Nigeria's capital inflows jump 90% in 2025 as foreign investors chase high returns

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.

Banking sector accounts for largest source of inflows

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 banking sector received the largest source of inflows.

Analysts say the data shows foreign investors have increased trading activities in Nigeria, but largely for yield, leaving the economy vulnerable to shifts in global financial conditions.