Nigeria’s Capital Inflows Jump 90% as Foreign Investors Rush for High Returns

Nigeria recorded a sharp rise in capital inflows in 2025, with foreign funds entering the economy, climbing by almost 90 per cent as investors took advantage of high yields in the country’s financial markets.

Official figures show that net capital imported into Nigeria rose to $23.22 billion in 2025, up from $12.32 billion in 2024. The surge was driven mainly by foreign portfolio investors returning to treasury instruments, bonds, and equities following recent economic reforms.

Portfolio investment accounted for the largest share of inflows, rising to $19.74 billion from $8.38 billion a year earlier. That means roughly 85 percent of all foreign capital that entered Nigeria during the year came through short-term market instruments rather than long-term business investment.

A closer look at the figures shows that money-market instruments attracted $13.83 billion, while bond inflows rose sharply to $4.89 billion. Equity portfolio investment also increased, reaching $2.10 billion.

Foreign direct investment, which is usually seen as a stronger sign of long-term confidence in an economy, rose only slightly. It increased to $923 million in 2025 from $675 million in 2024, suggesting that many investors still remain cautious about making deeper, long-term commitments in Nigeria.

Meanwhile, other forms of capital inflow, including loans and similar investments, declined to $2.55 billion from $3.27 billion in the previous year. The United Kingdom emerged as the biggest source of foreign capital, contributing 58 percent of the total inflows, while the banking sector received the largest share.

The figures suggest that foreign investors are returning to Nigeria, but mostly to benefit from attractive returns rather than to build long-term productive assets. That trend may offer short-term support for financial markets, but it also leaves the economy exposed to sudden changes in global investor sentiment.