Capital importation into Nigeria jumps 380% to $6.01bn in Q3 2025

Feb 15, 2026 By Economy Post Economy

NIGERIA recorded one of its strongest quarters for foreign capital inflows in recent years, as total capital importation rose sharply to $6.01 billion in the third quarter (Q3) of 2025, according to figures released by the National Bureau of Statistics (NBS).

The Q3 performance marks a 380.16 percent increase compared with the $1.25 billion recorded in the same period of 2024. It also represents a 17.46 per cent rise from the $5.12 billion posted in the second quarter (Q2) of the year, confirming a steady upward trend in foreign capital entering the Nigerian economy.

Analysts say the surge reflects renewed investor appetite for Nigerian assets, driven largely by higher yields in domestic financial markets, improved foreign exchange liquidity, and growing participation in government and private-sector instruments.

Short-term funds dominate inflow mix

A closer look at the composition of inflows shows that Nigeria continues to rely heavily on portfolio investment, which made up the bulk of total capital imported in the quarter.

Portfolio flows stood at $4.85 billion, accounting for 80.70 percent of total inflows. These funds are typically channelled into treasury bills, bonds, and equities and are often sensitive to interest rate movements and exchange rate stability.

Other investments, which include loans and trade credits, amounted to $864.57 million, representing 14.37 percent of the total. Meanwhile, Foreign Direct Investment (FDI), often seen as the most stable form of capital, recorded the smallest share at $296.25 million, or 4.93 percent.

The wide gap between portfolio flows and FDI continues to raise concerns about the long-term sustainability of Nigeria’s capital inflow structure, as short-term funds can exit quickly during periods of market stress.

Financial system attracts largest share

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Sectoral distribution data further reveals that the financial system absorbed the lion’s share of foreign capital.

The banking sector alone received $3.14 billion, accounting for 52.25 percent of total inflows in Q3 2025. This was followed by the financing sector, which attracted $1.86 billion or 30.85 percent of the total.

The production and manufacturing sector trailed far behind, receiving $261.35 million, equivalent to 4.35 percent. Other sectors shared the remaining portion of capital inflows.

The strong preference for the banking and financial sectors highlights investor confidence in Nigeria’s financial institutions, especially as key entry points for portfolio transactions and foreign currency instruments.

UK, US, and South Africa lead capital sources

Geographically, the bulk of capital entering Nigeria in Q3 2025 came from just three countries. The United Kingdom emerged as the largest source, contributing $2.94 billion, which represented 48.80 percent of total inflows. The United States followed with $950.47 million (15.80 percent), while South Africa accounted for $773.95 million (12.87 percent).

Together, these three countries supplied more than three-quarters of all foreign capital imported during the quarter, underlining their dominant role in Nigeria’s external investment flows.

Top receiving banks

Among individual financial institutions, Standard Chartered Bank Nigeria Limited received the highest inflow at $2.12 billion, representing 35.17 percent of total capital importation.

It was followed by Stanbic IBTC Bank Plc, which recorded $1.79 billion (29.75 percent ), and Citibank Nigeria Limited, which attr$561.40 million (9.33 percent).

These banks acted as major conduits for foreign portfolio funds and other investment inflows during the quarter.

Performance across earlier quarters

In Q1 2025, capital inflows stood at $5.6 billion, up 67.12 percent from the $3.4 billion recorded in Q1 2024. However, inflows dipped by 9.24 percent in Q2 2025 to $5.12 billion before rebounding strongly in Q3.

Q2 data also showed portfolio investment at $4.2 billion (82.02 percent), other investment at $777.80 million (15.19 percent), and FDI at $142.67 million (2.79 percent). The banking sector remained dominant, attracting $3.41 billion (66.56 percent) in that quarter.