By Abubakar Yunusa
Nigeria recorded a major surge in foreign capital inflows in the first quarter of 2026, attracting $10.37bn, an 83.83 per cent increase from the $5.64bn posted in the corresponding period of 2025, the National Bureau of Statistics revealed on Wednesday.
The latest Capital Importation Report also showed that capital inflows rose by 60.97 per cent from the $6.44bn recorded in the fourth quarter of 2025, signalling growing foreign investor confidence in the country’s financial markets.
According to the report, portfolio investment remained the dominant driver of capital inflows, accounting for $9.86bn or 95.09 per cent of the total amount imported into the economy during the period under review.
The NBS disclosed that foreign direct investment stood at $135.08m, representing only 1.30 per cent of total inflows, while other investments accounted for $374.48m or 3.61 per cent.
A breakdown of the figures showed that money market instruments attracted the largest share of portfolio investments with $6.50bn, while bonds accounted for $3.23bn. Equity investments contributed $131.81m.
The banking sector emerged as the biggest beneficiary of foreign capital, attracting $7.55bn, representing 72.79 per cent of the total inflows.
The financing sector followed with $2.43bn or 23.42 per cent, while the production and manufacturing sector received $152.27m, accounting for 1.47 per cent of imported capital.
Other sectors that attracted foreign investments included agriculture, telecommunications, information technology services, oil and gas, transport, construction, healthcare, education and consultancy services.
On the source of the funds, the United Kingdom retained its position as Nigeria’s largest capital provider, accounting for $5.08bn or 49.01 per cent of total inflows.
The United States followed with $3.18bn, representing 30.69 per cent, while South Africa contributed $983.83m or 9.49 per cent.
Among financial institutions, Standard Chartered Bank Nigeria Limited received the highest capital inflow at $4.41bn, accounting for 42.56 per cent of the total.
It was followed by Stanbic IBTC Bank Plc with $2.78bn and Rand Merchant Bank, which handled $930.82m.
Despite the strong growth in overall capital importation, the figures highlight the continued weakness of foreign direct investment, which accounted for only a small fraction of total inflows, suggesting that investors remain more attracted to short-term financial instruments than long-term productive investments.
The NBS noted that the data was compiled from information supplied by the Central Bank of Nigeria and captured fresh foreign capital reported by commercial banks across the country.
The development comes amid concerns over the sustainability of capital inflows, as foreign investors continue to channel a larger share of funds into bonds and money market instruments rather than direct investments capable of creating jobs and boosting industrial growth.
