Frank Okon

Foreign capital inflows into Nigeria jumped nearly 90% last year, reaching $23.2 billion, driven largely by portfolio investment in the country’s bond and money markets.

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According to official data, net capital from abroad rose from $12.3 billion in 2024 to $23.22 billion in 2025, with foreign portfolio investment accounting for about 85% of the total. Portfolio inflows surged to $19.74 billion from $8.38 billion, as investors returned to local financial markets to chase high yields amid ongoing economic reforms.

Investment in money-market instruments climbed to $13.83 billion, bond inflows nearly quintupled to $4.89 billion, and equity investments rose to $2.10 billion. By contrast, foreign direct investment (FDI) increased only modestly to $923 million, up from $675 million in 2024, highlighting continued caution over long-term commitments.

Other capital inflows, including loans and miscellaneous investments, fell to $2.55 billion from $3.27 billion. The United Kingdom emerged as the largest source, providing 58% of total inflows, while Nigeria’s banking sector captured the largest share of investments.

Analysts note that the surge signals renewed interest from foreign investors, but primarily for short-term yields rather than long-term productive investment. This exposes the Nigerian economy to potential volatility from shifts in global financial conditions.