Nigeria Attracts $16.4bn Capital Inflows in Five Months, Up 101.8%

Nigeria recorded a 101.8 per cent year-on-year increase in capital importation in the first five months of 2026, with total inflows rising to $16.41 billion from $8.13 billion recorded in the same period of 2025.

The growth was largely driven by Foreign Portfolio Investment (FPI), according to Vanguard’s analysis of the Central Bank of Nigeria’s (CBN) monthly economic reports covering January to May 2026.

FPI increased by 114.42 per cent YoY to $15.61 billion in the five months under review, compared with $7.28 billion in the corresponding period of 2025.

With the increase, FPI accounted for 95.12 per cent of Nigeria’s total capital importation in the five months of 2026, up from 89.54 per cent a year earlier.

In contrast, Foreign Direct Investment (FDI) and Other Investments declined during the period.

FDI dropped by 9.5 per cent YoY to $0.19 billion from $0.21 billion, while Other Investments, consisting of foreign loans and trade credits, fell by 7.69 per cent to $0.60 billion from $0.65 billion.

Capital inflows fluctuate monthly

Despite the strong year-on-year growth, capital importation recorded significant month-on-month movements between January and May.

Total inflows fell by 14.8 per cent from $3.52 billion in January to $3.0 billion in February. In March, however, capital importation rebounded by 28.3 per cent to $3.85 billion.

The figure subsequently dropped by 26.8 per cent to $2.82 billion in April before recovering by 14.2 per cent to $3.22 billion in May.

The monthly fluctuations were largely linked to changes in FPI, which contributed more than 90 per cent of total capital inflows in each of the five months.

FPI declined from $3.37 billion in January to $2.87 billion in February, representing a 14.8 per cent MoM fall. It then jumped by 26.1 per cent to $3.62 billion in March before declining by 26.5 per cent to $2.66 billion in April.

The investment category recovered in May, rising by 16.2 per cent to $3.09 billion.

FDI also recorded varying monthly movements. It rose by 33.3 per cent to $0.04 billion in February from $0.03 billion in January and increased by another 50 per cent to $0.06 billion in March.

FDI then declined by 50 per cent to $0.03 billion in April and remained at the same level in May.

Other Investments fell by 25 per cent MoM to $0.09 billion in February from $0.12 billion in January. The category surged by 77.8 per cent to $0.16 billion in March before declining by 12.5 per cent to $0.14 billion in April.

It fell further by 35.7 per cent to $0.09 billion in May.

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