Nigeria witnessed a significant resurgence in foreign capital inflows during January 2025, with total investments rising to $2.06 billion, marking a notable increase from the $1.57 billion recorded in December 2024.
The latest Central Bank of Nigeria (CBN) Economic Report attributed this growth to improved yields in the country’s financial markets, which have regained the confidence of international investors.
A breakdown of the figures showed that portfolio investments dominated inflows, surging to $1.85 billion in January from $1.23 billion the previous month. The CBN linked this sharp rise to heightened foreign interest in Nigeria’s money market instruments, particularly short-term, high-yield assets.
However, foreign direct investment (FDI) declined to $70 million from $120 million, indicating lingering caution among long-term investors. Similarly, ‘other investments’, primarily loans, dropped to $140 million from $220 million in December.
By composition, portfolio investments accounted for 89.6 per cent of total inflows, while other investments’ and FDI contributed 7.01 per cent and 3.39 per cent respectively.
The banking sector attracted the largest share of foreign capital, securing 45.22 per cent of total inflows, followed closely by the financing sector at 44.32 per cent. Other sectors, including telecommunications (3.86 per cent), manufacturing (3.01 per cent), shares (1.57 per cent), and trading (1.43 per cent), recorded marginal inflows.
Geographically, the United Kingdom remained Nigeriaโs largest source of foreign capital, accounting for 65.65 per cent of total inflows. Other major contributors included the United States (8.15 per cent), South Africa (7.66 per cent), United Arab Emirates (7.18 per cent), Mauritius (2.87 per cent), and Belgium (2.28 per cent).
In terms of domestic distribution, the Federal Capital Territory (FCT) received the highest share at 62.88 per cent, while Lagos accounted for 36.59 per cent of the total capital inflows.
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