By Ayo Kehinde
Nigeria recorded a sharp surge in foreign portfolio investment inflows in January 2026, with speculative capital, popularly known as hot money, rising to $3.37 billion and accounting for nearly 96 percent of total capital imported into the economy.
According to the latest Economic Report released by the Central Bank of Nigeria (CBN), total capital inflows climbed to $3.52 billion in January, representing a remarkable 181.6 percent increase from the $1.25 billion recorded in December 2025.
The report attributed the massive inflow largely to growing foreign investors’ appetite for Nigerian bonds and money market instruments, driven by improving macroeconomic conditions, exchange rate stability, easing inflationary pressures, and stronger external sector fundamentals.
The United States and the United Kingdom emerged as the leading sources of capital inflows into Nigeria during the period. Other contributors included Mauritius, South Africa, the United Arab Emirates, and France.
The CBN disclosed that the economy maintained a positive trade balance in January, while external reserves rose to $48.88 billion. The naira also appreciated by 2.43 percent to N1,416.52 per dollar at the Nigerian Foreign Exchange Market.
A breakdown of the figures showed that foreign portfolio investment jumped significantly from $940 million in December 2025 to $3.37 billion in January 2026, reinforcing Nigeria’s growing appeal to investors seeking higher returns in fixed-income securities.
However, foreign direct investment remained weak, falling by 80 percent to just $30 million during the review period. Other investments, mainly loans, also declined to $120 million.
Sectoral analysis showed that the banking industry remained the biggest beneficiary of capital inflows, attracting over 75 percent of total imported capital, followed by financing activities, which accounted for more than 22 percent.
