Banking sector records $7.55bn fresh capital inflows

Nigeria's capital importation experienced a significant boom in the first quarter of 2026, reaching a record $10.37 billion. This represents an 83.80% increase compared to the same period in 2025, when $5.64 billion was recorded. The surge was largely fueled by foreign participation, with the local banking sector serving as the primary conduit, attracting $7.55 billion, or 72.80% of the total inflows.

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The banking sector stayed the primary gateway, attracting $7.55bn or 72.80 per cent of total inflows.

Financing activities accounted for the second-largest share, bringing in $2.43 billion, while the manufacturing sector received a comparatively small $152.30 million. Investment firm Meristem Securities Limited noted in its economic analysis that the current wave of investment favors short-term financial instruments rather than long-term infrastructure projects. This trend suggests that the headline growth is more a reflection of financial market dynamics than a fundamental shift towards productive, long-term investments.

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This structure highlights that, despite the strong headline expansion compared to Q1 2025, capital importation remains largely a financial-market-driven cycle rather than a shift towards productive long-term investment.

Meristem analysts attribute the renewed offshore interest in Nigerian fixed-income assets to recent macroeconomic reforms. Key factors include improvements in the foreign exchange market, greater exchange rate flexibility, and relatively attractive domestic yields. These elements collectively restored offshore appetite for Nigerian assets. The report also highlighted robust demand in the Central Bank of Nigeria’s open market operations, with significant subscriptions for short-term, high-yield instruments, particularly the 133-day paper, which averaged a 20.99% stop rate.

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The strong year-on-year acceleration versus Q1 2025 was driven by improved FX market functioning, exchange rate flexibility, and relatively attractive domestic yields, which collectively restored offshore appetite.