Nigeria Sees Strong Rebound in Foreign Capital Inflows, Hits $2.06 Billion in January

Nigeria recorded a significant jump in foreign capital inflows in January 2025, reaching $2.06 billion, up from $1.57 billion in December 2024, according to the Central Bank of Nigeria (CBN).

The rise was driven largely by portfolio investments, which surged to $1.85 billion, fueled by attractive yields in domestic money market instruments. This signals renewed interest from foreign investors seeking short-term, high-return opportunities.

However, not all indicators were positive:

• Foreign Direct Investment (FDI) dropped to $70 million (from $120 million).

• Other investments, mostly loans, declined to $140 million (from $220 million).

Breakdown of Capital Inflows:

• Portfolio investment: 89.6%

• Other investments: 7.01%

• FDI: 3.39%

Top-performing sectors included:

• Banking: 45.22%

• Financing: 44.32%

• Others (Telecoms, Manufacturing, Shares, Trading): Below 4%

Key sources of capital:

• United Kingdom: 65.65%

• United States: 8.15%

• South Africa: 7.66%

• UAE, Mauritius, Belgium: Smaller shares

In terms of destination, the Federal Capital Territory (FCT) received the lion’s share with 62.88%, while Lagos followed with 36.59%.