Foreign investment inflows soar by 182% to reach $3.37 billion

Capital importation experienced a significant surge, rising by 182 per cent to $3.37 billion in January, up from $1.25 billion in December, driven primarily by an influx of foreign portfolio investments in bonds and money market instruments, according to the Central Bank of Nigeria's monthly economic report for January 2026.

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The report highlighted a substantial increase in foreign portfolio investment, which climbed to $3.37 billion, a notable increase from the $0.94 billion recorded in December 2025, largely due to higher inflows for the purchase of bonds and money market instruments.

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A total capital inflow of $3.52 billion was recorded in January 2026, marking a significant increase from the $1.25 billion reported in the preceding month, with foreign portfolio investment accounting for the bulk of the inflow at $3.37 billion.

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The composition of capital inflows revealed that 'other investment', primarily loans, decreased to $0.12 billion from $0.16 billion, while direct investment plummeted by 80.0 per cent to $0.03 billion during the review period.

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Foreign portfolio investment dominated the sources of foreign capital, accounting for 95.72 per cent of total inflows, while 'other investment' and direct investment accounted for 3.51 per cent and 0.77 per cent, respectively.

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An analysis of capital importation by business type showed that the banking sector was the primary recipient, with a 75.15 per cent share of total inflows, followed by financing activities, which attracted 22.20 per cent of the inflows.

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The production and manufacturing sectors, as well as shares, received 1.16 per cent and 0.76 per cent of the inflows, respectively, while other recipients included trading, agriculture, and IT Services, with 0.41 per cent, 0.17 per cent, and 0.07 per cent, respectively.

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Capital inflows by country of origin indicated that the US was the largest source, accounting for 46.25 per cent, followed by the UK with 40.57 per cent, and Mauritius with 5.80 per cent.

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South Africa and the United Arab Emirates also contributed to the inflows, with 3.21 per cent and 1.38 per cent, respectively, while other sources included France, Belgium, Singapore, Isle of Man, and Morocco, with 1.22 per cent, 0.52 per cent, 0.32 per cent, 0.16 per cent, and 0.10 per cent, respectively.

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Capital importation by destination revealed that Lagos state was the primary recipient, with a 90.17 per cent share of the total inflow, followed by the Federal Capital Territory with 9.80 per cent, and Ogun state and Akwa-Ibom state with 0.02 per cent and 0.01 per cent, respectively.