Nigeria recorded a total capital importation of $6.44 billion in the fourth quarter of 2025, reflecting a strong rebound in foreign investment inflows into the country.

Data released by the National Bureau of Statistics shows that the figure represents a 26.61 percent increase compared to $5.09 billion recorded in the same period of 2024.

On a quarter-on-quarter basis, capital inflows also rose by 7.13 percent from $6.01 billion recorded in the third quarter of 2025.

Portfolio investments dominate inflows

The report indicates that portfolio investment remained the major driver of capital importation, accounting for $5.49 billion, which represents 85.14 percent of total inflows.

In contrast, Foreign Direct Investment (FDI) contributed $357.80 million, representing just 5.55 percent, while other investments accounted for $599.65 million or 9.31 percent.

Further breakdown shows that money market instruments attracted $3.08 billion, while bonds accounted for $1.97 billion, highlighting strong investor preference for short-term and fixed-income assets.

Weak long-term investment signals concern

Despite the overall growth in capital inflows, the relatively low contribution of FDI underscores continued weakness in long-term investments.

This suggests that while investor confidence in Nigeria’s financial markets is improving, concerns remain about risks in the real sector and broader economic stability.

Banking sector leads capital inflows

Sectoral analysis shows that the banking sector attracted the largest share of foreign capital, receiving $3.85 billion, which represents 59.75 percent of total inflows.

The financing sector followed with $1.94 billion (30.15 percent), while the production and manufacturing sector recorded $308.93 million, accounting for 4.79 percent.

Other sectors such as telecommunications, agriculture and oil and gas attracted relatively lower inflows, reflecting a concentration of investment in financial services.

UK tops source of investments

In terms of origin, the United Kingdom emerged as the largest source of capital inflow, contributing $3.73 billion or 57.94 percent of the total.

The United States followed with $837.91 million (13 percent), while South Africa accounted for $516.96 million (8.02 percent).

Other contributors included Belgium and Mauritius, reinforcing Nigeria’s reliance on established global financial hubs.

Top banks driving inflows

Among financial institutions, Stanbic IBTC Bank Plc led with $2.23 billion, accounting for 34.58 percent of total inflows.

It was followed by Standard Chartered Bank Nigeria Ltd with $1.85 billion (28.75 percent) and CitiBank Nigeria Ltd with $840.72 million (13.05 percent).

Other banks such as Access Bank, Rand Merchant Bank and First City Monument Bank recorded moderate inflows during the period.

Implications for the economy

The latest figures point to improving investor sentiment, particularly in liquid financial instruments, amid ongoing monetary and fiscal reforms.

However, the dominance of portfolio investments over FDI highlights a structural challenge for policymakers—converting short-term capital inflows into long-term, productive investments.

Analysts say addressing this gap will be critical to driving sustainable economic growth, job creation and industrial expansion in Nigeria.

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