Nigeria's Capital Importation Surges to $10.37 Billion in Q1 2026

Nigeria experienced a significant increase in capital importation during the first quarter of 2026, reaching $10.37 billion. This represents a 61% rise from the $6.44 billion recorded in the previous quarter, according to the National Bureau of Statistics (NBS). The surge was primarily fueled by a substantial inflow of portfolio investments, as foreign investors capitalized on improved market conditions and attractive yields.

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The country’s capital importation rose to $10.37 billion in the first quarter of the year (Q1 2026) compared to the $6.44 billion recorded the preceding quarter.

Portfolio investments dominated the inflows, accounting for $9.86 billion, or 95.1% of the total capital imported. In contrast, Foreign Direct Investment (FDI) remained subdued, contributing only $135.08 million, or 1.3% of the total. Other investments made up the remaining $374.48 million. This trend highlights Nigeria's increasing reliance on short-term capital, particularly in financial assets, amidst the Central Bank of Nigeria's (CBN) efforts to stabilize the foreign exchange market and maintain investor confidence.

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Portfolio investment dominated inflows, amounting to $9.86 billion or 95.1 per cent of total capital imported into the country.

The banking industry was the largest recipient of foreign capital, attracting $7.55 billion, approximately 72.8% of the total. The financing sector followed with $2.43 billion, while the production and manufacturing sector received $152.27 million.

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Nigeria’s banking sector is benefiting from the liberalisation of the naira, with stronger foreign-currency inflows, increased foreign exchange market turnover and improved foreign-currency liquidity across the industry.

Global ratings agency Fitch Ratings observed that Nigeria's banking sector is benefiting from the liberalization of the naira, leading to stronger foreign-currency inflows, increased FX market turnover, and improved liquidity. However, Fitch also noted that the withdrawal of regulatory forbearance measures has exposed banks' asset quality, with rising impaired loan ratios. The agency predicts 20% credit growth in 2026 but warns of persistent inflation risks and significant exposure of banks to the sovereign.

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The withdrawal of long-standing regulatory forbearance measures for banks has exposed their asset quality as impaired loan ratios have risen.