Nigeria Attracts $6.44bn in Portfolio Inflows Amid Fragile Economic Recovery

Nigeria drew in billions of dollars in portfolio investments even as its economic recovery remained delicate.

In the final quarter of 2025, the country’s economy showed notable resilience, with total capital inflows rising to $6.44 billion. According to newly released data from the National Bureau of Statistics (NBS), this marks a 26.61% increase compared to the $5.09 billion recorded in the same period of 2024. It also reflects a 7.13% rise from the third quarter of 2025, indicating continued improvement in foreign investor confidence despite ongoing economic challenges.

Portfolio investments were the main driver of this growth, contributing $5.49 billion—over 85% of total inflows. Investors largely favored short-term, liquid assets, with $3.08 billion going into money market instruments and $1.97 billion into bonds. Meanwhile, Foreign Direct Investment (FDI) remained relatively low at $357.80 million, accounting for just 5.55% of total inflows. This gap suggests that while investors are gaining confidence in Nigeria’s financial markets, they are still cautious about making long-term investments in the real sector.

By sector, financial services attracted the majority of foreign capital, with the banking industry alone receiving $3.85 billion—nearly 60% of total inflows. The broader financing sector followed with $1.94 billion. Other sectors such as manufacturing, telecommunications, and agriculture lagged behind, with manufacturing drawing only $308.93 million. In terms of origin, the United Kingdom remained the largest source of capital, contributing $3.73 billion, followed by the United States and South Africa. Among banks, Stanbic IBTC Bank Plc processed the highest volume of inflows at $2.23 billion, with Standard Chartered and Citibank also handling significant amounts.

Alongside these investment trends, the NBS reported on domestic fuel prices, noting that the average petrol price stood at N1,051.47 in February 2026. This represents a 15.60% drop from N1,245.80 in February 2025, although it rose slightly by 1.62% compared to January. Price differences across states were significant, with Yobe recording the highest average price at N1,134.73, while Lagos had the lowest at N966.61. However, this period of relative price relief is now under pressure due to rising global tensions in the Middle East, which have pushed current petrol prices closer to N1,400.