Nigeria Capital Inflows Jump 84% to $10.37 Billion in Q1 2026

Foreign capital importation into Nigeria rose to $10.37 billion in the first quarter of 2026, an increase of 83.83% compared with the same quarter of 2025 and 60.97% higher than the preceding quarter, according to the National Bureau of Statistics.

Portfolio investment dominated the inflows, accounting for $9.86 billion, or 95.09% of the total. Within that category, money market instruments attracted $6.50 billion and bonds drew $3.23 billion, reflecting strong appetite for high-yielding naira assets.

Foreign direct investment remains small

Despite the headline jump, foreign direct investment stayed modest at $135.08 million, or 1.30% of total capital importation. Other investments, including loans and trade credits, accounted for $374.48 million, or 3.61%. Economists said the composition underscores that much of the recent rebound is hot money that can reverse quickly if yields or the exchange rate shift.

Portfolio flows can support the naira and government financing in the short term, but they are not a substitute for the long-term jobs and capacity that FDI brings.

Who is investing

By source, the United Kingdom supplied $5.08 billion, or 49.01% of total inflows, followed by the United States with $3.18 billion (30.69%) and South Africa with $983.83 million (9.49%). Singapore and other financial centres also featured, a pattern consistent with Nigeria's role as a recipient of capital routed through global investment hubs.

By destination, Standard Chartered Bank received the largest share, $4.41 billion or 42.56% of the total, followed by Stanbic IBTC Bank with $2.78 billion and Rand Merchant Bank with $930.82 million.

Context

The surge follows a period of reform in which the central bank unified the exchange rate, cleared a backlog of foreign exchange obligations and raised interest rates. Those moves improved the ease of repatriating capital, a key concern for foreign portfolio investors, even as they made domestic borrowing more expensive.

Analysts caution that sustaining inflows will require policy consistency, deeper local markets and a stronger pipeline of bankable projects. The return of investor interest is clear; converting it into durable investment is the harder task.

Sources: National Bureau of Statistics capital importation report (Q1 2026, released June 3, 2026);