Nigeria’s capital importation surged to $16.41 billion in the first five months of 2026, more than doubling the amount recorded in the corresponding period of 2025, according to data from the Central Bank of Nigeria.
The increase represents a 101.8 per cent year-on-year rise from the $8.13 billion recorded between January and May 2025, with Foreign Portfolio Investment (FPI) accounting for the overwhelming majority of the inflows.
An analysis of the CBN’s monthly economic reports for January to May 2026 shows that FPI increased by 114.42 per cent year-on-year to $15.61 billion, compared with $7.28 billion in the same period last year.
The stronger growth in portfolio inflows also increased their dominance of Nigeria’s capital-importation profile. FPI accounted for 95.12 per cent of total capital importation in the first five months of 2026, up from 89.54 per cent in the corresponding period of 2025.
The figures highlight the growing importance of portfolio flows to Nigeria’s foreign capital position, even as longer-term investment remained comparatively weak.
Foreign Direct Investment (FDI), generally associated with longer-term commitments to businesses and productive assets, declined by 9.5 per cent year-on-year to $190 million from $210 million.
Other Investments, which include foreign loans and trade credits, also fell by 7.69 per cent to $600 million from $650 million.
The composition of the inflows therefore remained heavily skewed towards portfolio investment, with FPI accounting for more than nine out of every 10 dollars of capital imported into the country during the period.
Monthly Flows Remain Volatile
Despite the strong year-on-year growth, capital importation fluctuated considerably from month to month.
Total inflows fell by 14.8 per cent month-on-month to $3.0 billion in February from $3.52 billion in January.
The decline was followed by a strong rebound in March, when capital importation rose by 28.3 per cent to $3.85 billion.
Inflows then fell sharply again in April, declining by 26.8 per cent to $2.82 billion, before recovering by 14.2 per cent in May to $3.22 billion.
The monthly movements largely reflected changes in portfolio investment, which accounted for more than 90 per cent of total capital inflows in each of the five months.
FPI fell by 14.8 per cent month-on-month to $2.87 billion in February from $3.37 billion in January. It rebounded by 26.1 per cent in March to $3.62 billion before dropping by 26.5 per cent to $2.66 billion in April.
In May, portfolio inflows recovered again, rising by 16.2 per cent to $3.09 billion.
The pattern illustrates the high degree of volatility in Nigeria’s current capital-importation figures, with overall inflows moving largely in line with the performance of portfolio investment.
FDI Remains Weak
While portfolio investment surged, foreign direct investment remained subdued.
FDI rose by 33.3 per cent month-on-month to $40 million in February from $30 million in January. It increased further by 50 per cent to $60 million in March.
However, the increase was short-lived. FDI fell by 50 per cent to $30 million in April and remained unchanged at that level in May.
The figures mean that, despite the more than doubling of total capital importation over the five-month period, Nigeria continued to attract relatively modest amounts of direct investment compared with portfolio flows.
Other Investments also recorded significant monthly swings.
Inflows in this category declined by 25 per cent to $90 million in February from $120 million in January, before surging by 77.8 per cent to $160 million in March.
The figure subsequently fell by 12.5 per cent to $140 million in April and declined by a further 35.7 per cent to $90 million in May.
Portfolio Flows Dominate Capital Importation
The latest figures underline the changing composition of foreign capital entering Nigeria.
While the overall value of capital importation has expanded significantly, the increase has been driven primarily by portfolio investors rather than by direct investment or foreign lending.
The $15.61 billion recorded in FPI during the five-month period was more than 80 times the $190 million recorded in FDI and substantially higher than the $600 million classified as Other Investments.
The development means that Nigeria’s headline capital-importation growth is being driven largely by financial-market inflows, which can be more sensitive to changes in investor sentiment and market conditions than longer-term direct investment.
For policymakers, the contrasting performance of FPI and FDI provides an important distinction in assessing the quality and sustainability of foreign capital entering the economy.
While the surge in overall inflows represents a substantial improvement from the previous year, the continued weakness in FDI points to the need for greater attention to investment that creates or expands productive capacity.
For now, however, portfolio investors remain the dominant force behind Nigeria’s stronger capital-importation numbers, accounting for virtually all of the increase recorded in the first five months of 2026.