Nigeria’s Capital Importation Rose by 26.6% in 2025
According to the National Bureau of Statistics, Nigeria’s capital importation increased significantly to US$6.44 billion in the fourth quarter of 2025, representing a 26.61% year-on-year increase and a 7.13% quarter-on-quarter increase. Portfolio investment dominated total inflows, accounting for more than 85%, other investments contributed over 9%, while foreign direct investment accounted for 5.55% of total inflows. This pattern indicates that capital inflows remained heavily concentrated in short-term financial instruments, while long-term productive investment in the economy remained limited.
Most inflows originated from the United Kingdom, followed by the United States, and the Republic of South Africa, and were channelled largely through a small number of major financial institutions. Although the increase in capital importation suggests improved investor confidence and may reflect the effects of ongoing macroeconomic reforms, the heavy reliance on portfolio flows leaves the economy exposed to volatility arising from external market shocks. The low share of foreign direct investment also points to weak long-term investment, which may constrain sustainable growth, industrial expansion, and job creation.
Policy should therefore focus on attracting more stable and productivity-enhancing capital through improvements in the ease of doing business, consistent policy implementation, and stronger investor protection. In addition, diversifying the sources of inflows, deepening domestic financial markets, and providing targeted incentives for foreign direct investment in productive sectors such as manufacturing would help to improve the overall quality and sustainability of capital inflows.
According to the National Bureau of Statistics, capital importation into Nigeria increased significantly to US$6.44 billion in the fourth quarter of 2025, representing a 26.61% year-on-year increase and a 7.13% quarter-on-quarter increase. Portfolio investment dominated total inflows, accounting for more than 85%, other investments contributed over 9%, while foreign direct investment accounted for 5.55% of total inflows. This pattern indicates that capital inflows remained heavily concentrated in short-term financial instruments, while long-term productive investment in the economy remained limited.
Most inflows originated from the United Kingdom, followed by the United States, and the Republic of South Africa, and were channelled largely through a small number of major financial institutions. Although the increase in capital importation suggests improved investor confidence and may reflect the effects of ongoing macroeconomic reforms, the heavy reliance on portfolio flows leaves the economy exposed to volatility arising from external market shocks. The low share of foreign direct investment also points to weak long-term investment, which may constrain sustainable growth, industrial expansion, and job creation.
Policy should therefore focus on attracting more stable and productivity-enhancing capital through improvements in the ease of doing business, consistent policy implementation, and stronger investor protection. In addition, diversifying the sources of inflows, deepening domestic financial markets, and providing targeted incentives for foreign direct investment in productive sectors such as manufacturing would help to improve the overall quality and sustainability of capital inflows.
