By Gloria Edeth
Nigeria attracted a total capital inflow of $6.44 billion in the fourth quarter of 2025, representing a 26.6 per cent increase compared to the preceding quarter, according to latest data released by the National Bureau of Statistics (NBS).
The report indicates a rebound in investor confidence, driven by improved macroeconomic conditions, policy adjustments, and renewed interest in key sectors of the economy.
A breakdown of the inflows shows that portfolio investments continued to dominate, accounting for the largest share, as foreign investors increased their participation in Nigeria’s equities and money markets amid attractive yields.
Foreign Direct Investment (FDI), though still relatively modest, also recorded a marginal uptick, reflecting cautious but growing long-term investor interest in sectors such as manufacturing, telecommunications, and energy.
Other investments, including loans and trade credits, contributed significantly to the total inflow, highlighting sustained engagement from international financial institutions and development partners.
Analysts say the increase underscores gradual recovery in Nigeria’s investment climate, supported by ongoing reforms aimed at stabilising the foreign exchange market and improving ease of doing business.
A financial analyst, Johnson Chukwu, noted that the surge in capital inflows reflects short-term investor confidence but stressed the need to attract more stable, long-term investments.
“The growth is encouraging, but much of it is still in portfolio flows, which can be volatile. The real test will be Nigeria’s ability to attract higher levels of foreign direct investment that support job creation and industrial growth,” he said.
The development comes amid policy efforts by monetary and fiscal authorities to strengthen investor sentiment, including exchange rate reforms and measures to improve transparency in the financial system.
However, stakeholders caution that sustaining the momentum will depend on addressing structural challenges such as infrastructure deficits, security concerns, and policy consistency.
They also emphasised the importance of deepening domestic investment capacity to complement foreign inflows and reduce vulnerability to external shocks.
For policymakers, the latest figures present a positive signal, but also highlight the need for sustained reforms to convert rising capital inflows into tangible economic growth and development outcomes.
