Nigeria’s banks processed $16.78 billion in capital inflows in the first nine months of 2025 — a 131.8% jump year-on-year — with nearly all funds concentrated in short-term portfolio investments, according to the Q3 2025 Capital Importation report released by the National Bureau of Statistics.
The figure represents a 131.81% increase compared to the $7.236 billion recorded during the same period in 2024, underscoring a sharp rebound in foreign investor activity. However, the composition of the inflows shows that approximately 97% entered as foreign portfolio investments (FPIs), while only 3.3% qualified as foreign direct investment (FDI).
The data suggest that banks primarily acted as financial conduits for portfolio flows rather than as ultimate beneficiaries of long-term capital deployment.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026).
Register for Tekedia AI in Business Masterclass.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab.
Capital importation strengthened steadily across all three quarters of 2025.
In Q1, inflows reached $5.64 billion, up 67.12% from $3.38 billion in Q1 2024. The pace accelerated in Q2, with $5.12 billion recorded — a 96.60% increase from $2.60 billion a year earlier. By Q3, inflows climbed to $6.01 billion, representing a 380.16% surge compared to $1.252 billion in Q3 2024.
Together, these quarterly performances lifted year-to-date inflows to $16.774 billion, already surpassing the full-year 2024 total.
Of the total inflows in the nine-month period, about $13.6 billion was invested in bonds and money market instruments, while only $590 million went into equity investments. This distribution reinforces the dominance of fixed-income securities in attracting foreign capital.
In November 2025, Central Bank of Nigeria Governor Olayemi Cardoso said at the 60th Annual Bankers’ Dinner that Nigeria had recorded $20.98 billion in foreign capital inflows in the first ten months of 2025.
“Foreign capital inflows reached US$20.98 billion in the first ten months of 2025, a 70% increase over total inflows for 2024 and a 428% surge compared to the US$3.9 billion recorded in 2023, reflecting a clear resurgence in investor confidence,” Cardoso said.
Banks as Primary Gateways
The Q3 data show a concentration of inflows among a handful of international and tier-one banks.
Standard Chartered Bank Nigeria Limited recorded the highest share in Q3 with $2.115 billion, accounting for 35.17% of total inflows. Stanbic IBTC Bank Plc followed with $1.789 billion, representing 29.75%.
Citibank Nigeria Limited processed $561.40 million, while Access Bank Plc recorded $385.03 million. Rand Merchant Bank received $306.92 million, Ecobank Nigeria Plc $299.91 million, and First Bank of Nigeria Plc $254.29 million. Zenith Bank Plc, Guaranty Trust Bank Plc, and Fidelity Bank Plc recorded comparatively smaller shares.
The concentration pattern indicates that foreign investors continue to rely on globally connected institutions and top-tier domestic banks to intermediate capital flows into Nigeria’s financial markets.
In Q1 2025, Standard Chartered, Stanbic IBTC, and Citibank accounted for roughly 80% of total capital importation, highlighting their central role in facilitating cross-border portfolio transactions.
Sectoral data show that the banking sector attracted $3.142 billion in Q3 alone, equivalent to 52.25% of total capital imported during the quarter. The financing sector followed with $1.855 billion, or 30.85%.
Production and manufacturing received just $261.35 million, accounting for 4.35% of total inflows. The disparity underscores the limited penetration of foreign capital into sectors directly linked to industrial expansion and job creation.
In terms of source countries, the United Kingdom led with $2.935 billion, representing 48.80% of Q3 inflows. The United States contributed $950.47 million, while South Africa accounted for $773.95 million.
The geographic pattern reflects Nigeria’s continued integration with major global financial centers, though the data do not distinguish between FDI and portfolio components within each country’s contribution.
Sustainability Questions
The surge in capital importation signals renewed foreign investor appetite, driven largely by elevated domestic interest rates and attractive yields on treasury bills and bonds. Nigeria’s monetary tightening cycle has positioned its fixed-income market as a high-yield destination.
However, the overwhelming dominance of portfolio flows raises questions about durability. Portfolio capital is highly sensitive to global risk sentiment, exchange rate expectations, and interest rate differentials. A shift in global liquidity conditions or domestic policy direction could trigger reversals.
By contrast, FDI — which supports infrastructure development, factory construction, and long-term enterprise growth — remains marginal at just over 3% of total inflows.
The 2025 figures, therefore, present a dual narrative. On one hand, capital importation has rebounded strongly, surpassing 2024 levels within nine months. On the other hand, the structure of those inflows suggests that Nigeria’s financial system is serving primarily as a channel for short-term investments rather than as a magnet for long-term productive capital.