Foreign Capital Inflows Surge 84% to $10.37 Billion as Investors Flock to Nigerian Assets in Q1 2026
Nigeria witnessed a significant boost in foreign capital inflows during the first quarter of 2026, attracting a total of $10.37 billion as international investors increased their exposure to the country’s financial markets. According to data released by the National Bureau of Statistics (NBS), the figure represents an impressive 83.8% increase compared to the $5.64 billion recorded during the same period in 2025. The latest numbers also show a 61% rise from the $6.44 billion posted in the final quarter of 2025, highlighting renewed confidence in Nigerian financial assets.
The surge was largely fueled by portfolio investments, which accounted for an overwhelming 95.1% of total capital inflows. Portfolio investment reached $9.86 billion during the quarter, reflecting strong foreign demand for money market instruments and government bonds. Money market instruments alone attracted $6.50 billion, while bond investments totaled $3.23 billion, together contributing more than 98% of all portfolio inflows. The trend suggests that investors continue to favor short-term financial opportunities offering attractive returns.
Despite the overall growth in capital importation, Foreign Direct Investment (FDI) remained relatively weak. FDI inflows stood at just $135.08 million, representing only 1.3% of total capital imported into the country. Although this marked a slight improvement from the previous year, it declined sharply compared to the preceding quarter. Other investments, including loans and trade credits, contributed $374.48 million, with loans accounting for the majority of the amount. The figures indicate that long-term productive investments remain limited despite growing interest in Nigeria’s financial markets.
A sectoral breakdown revealed that the banking industry remained the biggest beneficiary of foreign capital during the quarter. The sector attracted $7.55 billion, representing nearly 73% of total inflows. The financing sector followed closely with $2.43 billion, meaning both sectors accounted for more than 96% of all foreign capital imported into the country. In contrast, sectors crucial to economic diversification such as agriculture, manufacturing, information technology, oil and gas, education, construction, and healthcare received comparatively small inflows, raising concerns about the concentration of investment in financial assets rather than productive sectors.
On the source of investments, the United Kingdom emerged as Nigeria’s largest foreign capital contributor, accounting for nearly half of total inflows with $5.08 billion. The United States followed with $3.18 billion, while South Africa contributed $983.83 million. Among financial institutions, Standard Chartered Bank Nigeria processed the highest volume of capital inflows at $4.41 billion, followed by Stanbic IBTC Bank and Rand Merchant Bank. The latest figures reinforce Nigeria’s growing appeal to foreign portfolio investors, although experts say attracting more long-term investments into productive sectors remains essential for sustainable economic growth and job creation.
source: nairametrics