Nigeria’s capital inflows jump 88% to $23.2bn in 2025 on FX reforms, investor confidence

Capital inflows into Nigeria surged by 88.5 percent year-on-year to $23.21 billion in 2025, up from $12.31 billion recorded in 2024, signalling renewed foreign investor confidence amid ongoing foreign exchange reforms.

Data released by the National Bureau of Statistics (NBS) in its Capital Importation Report showed a steady quarterly performance throughout the year.

Inflows stood at $5.64 billion in the first quarter, dipped by 9.2 percent to $5.12 billion in the second quarter, before rebounding to $6.01 billion in the third quarter and rising further to $6.44 billion in the fourth quarter.

The fourth-quarter performance represents a 26.61 percent increase compared to $5.09 billion recorded in the same period of 2024.

Portfolio investments dominated total inflows, accounting for $5.49 billion or 85.14 percent, while other investments contributed $599.65 million (9.31 percent). Foreign Direct Investment (FDI) remained comparatively low at $357.80 million, representing 5.55 percent of total capital importation.

Sectoral analysis showed that the banking sector attracted the highest inflows at $3.85 billion (59.75 percent), followed by the financing sector with $1.94 billion (30.15 percent). The production and manufacturing sector received $308.93 million, accounting for 4.79 percent.

By country of origin, the United Kingdom led with $3.73 billion (57.94 percent), followed by the United States with $837.91 million (13 percent) and South Africa with $516.96 million (8.02 percent).

Among financial institutions, Stanbic IBTC Bank Plc recorded the highest inflow with $2.23 billion (34.58 percent), followed by Standard Chartered Bank Nigeria Ltd with $1.85 billion (28.75 percent) and Citibank Nigeria Ltd with $840.72 million (13.05 percent).

The NBS said the strong performance reflects sustained investor interest in Nigeria’s capital markets and growing confidence in the country’s economic reforms, particularly the liberalisation of the foreign exchange regime.