…Among financial intermediaries, Standard Chartered Bank Nigeria received the largest share of capital inflows, processing $4.41 billion, equivalent to 42.6% of the total.
TUE JUNE 02 2026-theGBJournal| Nigeria recorded a sharp rebound in foreign capital inflows in the first quarter of 2026, underscoring renewed investor appetite for the country’s financial assets amid improving foreign-exchange liquidity and ongoing economic reforms.
Data released by the National Bureau of Statistics (NBS), sourced from the Central Bank of Nigeria (CBN), showed total capital importation rose to $10.37 billion in the three months through March, an 83.8% increase from $5.64 billion in the corresponding period of 2025.
Compared with the preceding quarter, inflows climbed 61.0% from $6.44 billion, marking one of the strongest quarterly performances in recent years.
The surge was driven overwhelmingly by portfolio investments, which accounted for more than 95% of total inflows.
Foreign investors brought in $9.86 billion through money-market instruments, bonds, equities and other portfolio assets, reflecting growing confidence in Nigeria’s financial markets and attractive yields available in local fixed-income securities.
Other investments, including loans and trade credits, contributed $374.48 million, while foreign direct investment (FDI) remained subdued at just $135.08 million, representing 1.3% of total inflows.
The banking sector emerged as the primary destination for foreign capital, attracting $7.55 billion, or nearly 73% of total inflows during the quarter.
The financing sector followed with $2.43 billion, accounting for 23.4%, while the production and manufacturing sector received only $152.27 million, equivalent to 1.5% of total imported capital.
Analysts say the concentration of inflows into financial institutions reflects investor preference for liquid assets and financial market opportunities rather than direct exposure to the broader economy.
Elevated domestic interest rates and attractive returns on government securities have continued to draw offshore portfolio investors seeking yield.
The United Kingdom retained its position as Nigeria’s largest source of foreign capital, accounting for $5.08 billion, or 49% of total inflows.
The United States followed with $3.18 billion, representing 30.7%, while South Africa contributed $983.83 million, equivalent to 9.5% of total imported capital.
Among financial intermediaries, Standard Chartered Bank Nigeria received the largest share of capital inflows, processing $4.41 billion, equivalent to 42.6% of the total.
Stanbic IBTC Bank handled $2.78 billion, representing 26.8%, while Rand Merchant Bank facilitated $930.82 million, accounting for nearly 9%.
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