Portfolio Investment Drives Nigeria’s Capital Inflow To $6.01bn

Nigeria’s capital importation climbed to $6.01 billion in the third quarter (Q3) of 2025, as surging portfolio investments boosted foreign inflows into the economy, according to the latest report released by the National Bureau of Statistics (NBS).

The Q3 figure represents a sharp 380.16 per cent increase from the $1.25 billion recorded in the corresponding period of 2024 and a 17.46 per cent rise from the $5.12 billion posted in the second quarter (Q2) of 2025.

In Q2, total inflows had already shown a strong recovery at $5.12 billion, reflecting a 96.6 per cent year-on-year increase despite a marginal decline from Q1 2025.

The rebound was overwhelmingly driven by portfolio investments, which remained the dominant component of capital inflows throughout the year.

In Q2 2025, portfolio investments accounted for $4.20 billion, representing 82.02 per cent of total inflows, while in Q3 they rose further to $4.85 billion, making up 80.70 per cent of total capital imported.

By contrast, Foreign Direct Investment (FDI) remained modest at $142.67 million in Q2 and improved slightly to $296.25 million in Q3, underscoring the continued reliance on short-term capital flows rather than long-term productive investments.

Sectoral data showed that the banking sector attracted the largest share of inflows in both quarters, drawing $3.41 billion in Q2 and $3.14 billion in Q3. The financing sector also recorded significant gains, particularly in Q3, where it received $1.86 billion.

The United Kingdom emerged as the leading source of capital, contributing $1.86 billion in Q2 and rising to $2.94 billion in Q3, followed by the United States and South Africa.

Among financial institutions, Standard Chartered Bank Nigeria Limited and Stanbic IBTC Bank Plc accounted for a substantial portion of transactions, highlighting the concentration of inflows within major banking channels.

Overall, the data point to a strong year-on-year recovery in capital importation in 2025, anchored largely on renewed foreign portfolio appetite for Nigerian assets.