Banking sector pulls $13.53bn foreign inflows in 2025 on recapitalisation momentum

FOREIGN investments into Nigeria’s banking industry climbed sharply to $13.53 billion in 2025, marking a 93.25 percent increase compared to the $7.00 billion recorded in 2024.

The significant uptick comes as banks ramped up capital raising efforts in preparation for the Central Bank of Nigeria (CBN)’s recapitalisation deadline.

According to the National Bureau of Statistics (NBS) capital importation report, the banking sector retained its position as the leading recipient of foreign capital, accounting for 58.26 percent of total inflows in 2025, up from 56.81 percent in 2024. This underscores the sector’s continued dominance in Nigeria’s investment landscape.

What the data indicates

Quarterly figures reveal a steady rise in inflows, pointing to sustained foreign investor interest throughout the year, Nairametrics reported.

In the first quarter (Q1) of 2025, the sector attracted $3.13 billion, higher than the $2.07 billion recorded in the same period of 2024. Inflows accelerated further in the second quarter (Q2) to $3.41 billion, compared to $1.12 billion a year earlier.

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The upward trend continued in the third quarter (Q3), with inflows reaching $3.14 billion, a sharp jump from $579.48 million in Q3 2024. By the fourth quarter (Q4), inflows had risen to $3.85 billion, surpassing the $3.23 billion recorded in the corresponding period of the previous year.

This pattern suggests that capital inflows were spread across the year, aligning with banks’ phased approach to meeting recapitalisation requirements.

Banking dominates capital importation

The banking sector consistently accounted for a large share of total capital inflows across all quarters in 2025. Its share stood at 55.44 percent in Q1, peaked at 66.56 percent in Q2, dipped slightly to 52.25 percent in Q3, and rose again to 59.75 percent in Q4.

In comparison, 2024 figures showed more fluctuation, with the sector contributing between 43.15 percent in Q2 and 63.46 percent in Q4. This indicates a more stable and concentrated inflow pattern into banking in 2025.

Overall, Nigeria’s total capital importation rose to $23.22 billion in 2025, representing an 88.45 percent increase from $12.32 billion in 2024. Quarterly inflows also improved steadily, growing from $5.64 billion in Q1 to $6.44 billion in Q4, reflecting stronger liquidity and rising investor confidence.

Notably, the banking sector accounted for more than $6.53 billion of the total $10.90 billion increase in inflows, highlighting its pivotal role in driving overall growth.

The surge in foreign capital is largely linked to Nigeria’s ongoing bank recapitalisation programme, which is reshaping the structure of capital inflows into the economy.

With new minimum capital requirements of up to N500 billion for international banks, lenders have turned to foreign investors through equity offerings, private placements, and strategic partnerships to meet regulatory thresholds.

Thirty-two banks meet recapitalisation requirements

Governor of the Central Bank of Nigeria, Olayemi Cardoso, last week, disclosed that 32 banks had met the new capital requirements under the ongoing recapitalisation programme, ahead of the March 31, 2026 deadline.

He had dosclosed that Nigerian banks have attracted N4.61 trillion in fresh capital following the apex bank’s recapitalisation drive, with 27 percent of the funds cming from foreign investors.

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“Nigerian banks in spite of navigating subsidy removals and exchange rate reforms, attracted N4.61 trillion in new capital; nearly 27 percent from foreign investors, while also expanding their footprint across African markets,” he said at the International Monetary Fund/Africa Regional Technical Assistant Centres (IMF/AFRITAC) West 2 high-level forum on financial sector regulation and supervision in Abuja.

Cardoso said as financial systems across the continent become increasingly interconnected, regulators must strengthen collaboration to manage cross-border risks.

“As African banks and financial systems become increasingly interconnected, collaboration among regulators is not optional but essential to safeguard stability and ensure shared prosperity,” he said stressing that, “By ending years of regulatory forbearance, we have reinforced accountability, tightened supervision, and elevated compliance standards across the sector.”