UK Accounts for 48% of Nigeria’s Capital Inflow

United Kingdom dominated foreign capital flows into Nigeria last quarter, accounting for nearly half of all funds entering the economy, according to data by the National Bureau of Statistics (NBS) Q3 2025 capital importation report.
The report showed that total capital imported into Nigeria in the third quarter of 2025 rose to $6.01 billion, the highest level recorded in six years and up sharply from the previous year. Portfolio investments drove the surge, with foreign portfolio inflows rising by 439.74 per cent year-on-year to $4.85 billion, reflecting strong investor demand for Nigerian financial assets.
A breakdown of the sources of capital shows that the United Kingdom remained the largest contributor, providing 48.80 per cent of total inflows, approximately $2.94 billion. The United States followed with 15.80 per cent, South Africa 12.87 per cent, Mauritius 7.51 per cent, and the Netherlands 4.70 per cent of total capital inflows.
The high concentration of inflows from the UK underlines Nigeria’s continued appeal to international investors seeking yield advantages. Nigeria’s monetary policy rate stood at 27.00 per cent, significantly above policy rates in advanced and regional peers, making fixed-income securities particularly attractive to offshore funds.
Foreign portfolio investments accounted for 80.70 per cent of all capital imported during the review period, showing broad-based gains across money market instruments, sovereign bonds and equities. Money market instruments remained the largest component of portfolio inflows, even as some investors shifted toward longer-duration instruments in anticipation of a potential monetary policy easing cycle.
Equity market participation also strengthened, with foreign equity inflows rising 126 per cent quarter-on-quarter, while bond inflows more than doubled compared with the prior year. Foreign direct investment showed signs of recovery too, increasing to $296.25 million and lifting its share of total capital importation to 4.93 per cent.
Sectorally, the banking industry was the largest recipient of capital flows, attracting over half of total inflows as offshore investors tapped into Nigeria’s expanding financial markets.
While the resurgence of foreign capital points to renewed confidence in Nigeria’s financial landscape, analysts caution that the heavy reliance on short-term portfolio flows could expose the economy to volatility if global risk appetites shift.