Nigeria recorded a strong rebound in foreign capital inflows in the fourth quarter of 2025, attracting $6.44 billion, up 26.6 per cent year-on-year, according to new data from the National Bureau of Statistics (NBS).
The figure also represents a 7.13 per cent increase from the $6.01 billion recorded in Q3 2025, signalling sustained investor interest, particularly in financial markets.
The NBS report shows that portfolio investments—often referred to as “hot money”, accounted for the bulk of inflows, contributing $5.49 billion or 85.1 per cent of the total.
- Money market instruments: $3.08 billion
- Bonds: $1.97 billion
In contrast, Foreign Direct Investment (FDI) remained weak at just $357.8 million (5.55%), highlighting continued hesitation toward long-term commitments in Nigeria’s real economy.
Sectoral breakdown reveals a heavy concentration of inflows in financial services:
- Banking sector: $3.85 billion (59.75%)
- Financing sector: $1.94 billion (30.15%)
- Manufacturing: $308.9 million (4.79%)
Other sectors such as telecoms, agriculture, and oil & gas attracted relatively minimal investment, reinforcing concerns that capital is not flowing into productive, job-creating industries.
By origin, the United Kingdom emerged as the largest investor, accounting for $3.73 billion (57.94%) of total inflows.
- United States: $837.9 million (13.0%)
- South Africa: $516.9 million (8.02%)
This trend underscores Nigeria’s continued dependence on established global financial hubs.
Among financial institutions, Stanbic IBTC Bank led capital importation with $2.23 billion, followed by:
- Standard Chartered Bank Nigeria: $1.85 billion
- CitiBank Nigeria: $840.7 million
Other players like Access Bank, Rand Merchant Bank, and FCMB posted moderate figures.
The data reflects improving investor confidence, likely driven by ongoing monetary and fiscal reforms. However, the structure of inflows raises key concerns:
- Heavy reliance on short-term portfolio investments
- Persistently low FDI levels
- Limited impact on real sector growth
For policymakers, the immediate challenge is clear: convert rising capital inflows into long-term investments that drive industrialisation, job creation, and sustainable economic growth.
