Foreign capital inflows up by 84% to $10.37bn in Q1 2026c, says NBS

Nigeria attracted $10.37 billion in capital importation in the first quarter of 2026, marking an 83.8per cent increase compared to the $5.64 billion recorded in the corresponding period of 2025, as foreign investors ramped up purchases of money market instruments and bonds.

This is according to the latest data released by the National Bureau of Statistics (NBS) on Wednesday.

The data showed that capital inflows also rose by 61per cent quarter-on-quarter from $6.44 billion recorded in the fourth quarter of 2025, underscoring growing investor appetite for Nigerian financial assets.

The report read, “In Q1 2026, total capital importation into Nigeria stood at $10.37 billion, higher than $5.64 billion recorded in Q1 2025, indicating an increase of 83.83per cent. In comparison to the preceding quarter, capital importation increased by 60.97per cent from $6.44 billion in Q4 2025.” 

Portfolio investment remained the primary driver of capital importation during the quarter, accounting for $9.86 billion or 95.1% of total inflows.

The figure represents an 89.5% increase from the corresponding period of 2025 and a 79.8% rise from the previous quarter. Within the category, money market instruments attracted $6.50 billion, while investments in bonds stood at $3.23 billion. The two asset classes jointly accounted for over 98% of portfolio inflows.

In contrast, Foreign Direct Investment (FDI) remained weak despite a marginal annual improvement. FDI inflows stood at $135.08 million, representing just 1.3% of total capital importation during the period. While this was 7% higher than the level recorded a year earlier, it declined by more than 62% from the previous quarter.

Other investments contributed $374.48 million, accounting for 3.6per cent of total inflows. Loans made up the bulk of this category at $364.43 million, while trade credits accounted for $10 million.

The latest figures highlight the continued preference of foreign investors for short-term financial assets over long-term productive investments in the economy.

Sectoral analysis showed that the banking industry remained the biggest destination for foreign capital.

The sector attracted $7.55 billion, representing 72.8per cent of total capital imported into the country during the quarter. The financing sector followed with $2.43 billion or 23.4per cent, meaning the two sectors accounted for more than 96per cent of all inflows recorded during the period.

The production and manufacturing sector received $152.27 million, while investments in shares stood at $75.34 million.

Other sectors attracted significantly smaller amounts. Trading received $65.79 million, agriculture attracted $37.28 million, while information technology services recorded $11.33 million. Telecommunications received $7.24 million.

Notably, sectors often considered critical to economic diversification recorded negligible inflows. Oil and gas attracted only $460,000, while construction received $100,000. Education attracted $70,000 and health and social work received $120,000.

The distribution suggests that foreign investors remain concentrated in financial assets rather than productive sectors of the economy.

The United Kingdom emerged as the largest source of foreign capital into Nigeria during the quarter, accounting for $5.08 billion or 49per cent of total inflows.

The United States followed with $3.18 billion, representing 30.7per cent, while South Africa contributed $983.83 million or 9.5per cent of total capital imported into the country. Mauritius and the United Arab Emirates accounted for $390.07 million and $194.51 million respectively.

Among financial institutions, Standard Chartered Bank Nigeria Limited received the largest volume of capital inflows, processing $4.41 billion or 42.6per cent of total importation.

Stanbic IBTC Bank followed with $2.78 billion, representing 26.8per cent, while Rand Merchant Bank handled $930.82 million. Citibank Nigeria and Access Bank processed $782.84 million and $710.03 million respectively.

Other major receiving banks included First Bank of Nigeria, Guaranty Trust Bank, Zenith Bank, FCMB, Ecobank and Fidelity Bank.

Nigeria recorded a sharp increase in foreign portfolio investment inflows in January 2026, with hot money inflows rising to $3.37 billion and accounting for 95.72per cent of the country’s total capital importation.

The report showed that total capital inflows into the economy rose to $3.52 billion in January, representing an increase of 181.6per cent from the $1.25 billion recorded in December 2025, driven largely by foreign investors’ increased appetite for Nigerian bonds and money market instruments.