Capital inflows into Nigeria jumped nearly 90% in 2025, driven overwhelmingly by foreign portfolio investment as investors returned to local financial markets to chase high bond yields after economic reforms.
Net capital invested from abroad rose to $23.22 billion from $12.32 billion in 2024, official data shows.
The increase was led by foreign portfolio investment, which surged to $19.74 billion from $8.38 billion, accounting for about 85% of total inflows.
Among the main categories of investment, inflows into money‑market instruments climbed to $13.83 billion, while bond inflows jumped nearly fivefold to $4.89 billion. Equity portfolio investment rose to $2.10 billion.
By contrast, foreign direct investment increased only modestly to $923 million, up from $675 million in 2024, underscoring persistent investor caution over long‑term commitments.
Capital inflows categorised as “other investment”, including loans, fell to $2.55 billion from $3.27 billion. The United Kingdom was the largest source of inflows, accounting for 58%, while the banking sector received the biggest share.
Analysts say the data shows foreign investors are trading Nigeria again, but largely for yield rather than long‑term productive investment, leaving the economy vulnerable to shifts in global financial conditions.
Reuters
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