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:
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Foreign Direct Investment (FDI) dropped to $70 million (from $120 million).
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Other investments, mostly loans, declined to $140 million (from $220 million).
Breakdown of Capital Inflows:
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Portfolio investment: 89.6%
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Other investments: 7.01%
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FDI: 3.39%
Top-performing sectors included:
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Banking: 45.22%
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Financing: 44.32%
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Others (Telecoms, Manufacturing, Shares, Trading): Below 4%
Key sources of capital:
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United Kingdom: 65.65%
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United States: 8.15%
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South Africa: 7.66%
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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%.
