Capital inflows into Nigeria surged nearly 90% in 2025, signalling renewed foreign appetite for local markets after sweeping economic reforms reshaped investor expectations.
Official data showed net capital investment rising to $23.22 billion from $12.32 billion a year earlier, marking one of the country’s strongest annual rebounds.
The recovery was powered largely by foreign portfolio investment, which climbed sharply to $19.74 billion, accounting for roughly 85% of total inflows.
Investors flocked to Nigeria’s financial markets seeking high yields, as government reforms and elevated bond returns drew global funds back toward the country.
Inflows into money-market instruments reached $13.83 billion, while bond investments surged nearly fivefold to $4.89 billion, reflecting strong demand for fixed-income securities.
Equity portfolio investment also increased, rising to $2.10 billion, suggesting cautious but growing confidence in Nigeria’s stock market performance.
Foreign direct investment, however, edged up only modestly to $923 million from $675 million, highlighting lingering hesitation toward long-term economic commitments.
Capital classified as other investment, including loans and similar financing, declined to $2.55 billion from $3.27 billion, indicating weaker appetite for traditional lending flows.
The United Kingdom emerged as the largest source of capital, contributing 58% of total inflows, while Nigeria’s banking sector attracted the largest share of funds.
Analysts said the figures reveal investors are actively trading Nigerian assets again, yet primarily chasing yields rather than financing sustained economic expansion.
The influx offers short-term financial relief but leaves Nigeria exposed to sudden reversals if global interest rates shift or investor sentiment weakens.
For policymakers, the numbers reflect both success and fragility, as renewed confidence returns alongside persistent doubts about deeper structural stability.