By Ayo Kehinde
Nigeria recorded a sharp rise in foreign capital inflows in the first quarter of 2026, attracting $10.37 billion, an 83.8 percent increase from the $5.64 billion recorded in the same period of 2025, according to data released by the National Bureau of Statistics (NBS).
The latest figures also show a 61 percent quarter-on-quarter increase from the $6.44 billion posted in Q4 2025, reflecting growing investor confidence in Nigerian financial assets, particularly money market instruments and bonds.
Portfolio investment remained the dominant source of inflows, accounting for $9.86 billion, or 95.1 percent of total capital imported during the quarter. This represents an 89.5 percent increase year-on-year and a 79.8 percent rise from the previous quarter.
Money market instruments attracted $6.50 billion, while bond investments reached $3.23 billion, together contributing more than 98 percent of total portfolio inflows.
Despite the overall surge, Foreign Direct Investment (FDI) remained subdued at $135.08 million, representing just 1.3 percent of total inflows.
Although this was 7 percent higher than a year earlier, it declined by over 62 percent compared to Q4 2025. Other investments contributed $374.48 million, largely in the form of loans.
Sectoral data showed that the banking industry remained the biggest beneficiary, attracting $7.55 billion, or 72.8 percent of total inflows.
The financing sector followed with $2.43 billion, meaning both sectors accounted for more than 96 percent of all foreign capital imported during the quarter.
The United Kingdom emerged as the largest source of capital, contributing $5.08 billion, followed by the United States with $3.18 billion and South Africa with $983.83 million.
Among financial institutions, Standard Chartered Bank Nigeria processed the highest volume of inflows at $4.41 billion, ahead of Stanbic IBTC Bank’s $2.78 billion.
The data highlights continued foreign investor preference for short-term financial assets over long-term productive investments in the Nigerian economy.
