According to the Central Bank of Nigeria's (CBN) monthly economic reports, capital importation into Nigeria rose significantly in the first five months of 2026. The total capital inflow for the period was $16.41 billion, representing a 101.8% increase from $8.13 billion recorded in the corresponding period of 2025. This substantial growth indicates a positive trend in Nigeria's economic landscape.
An analysis of the CBN's reports revealed that Foreign Portfolio Investment (FPI) was the primary driver of the surge in capital importation. FPI increased by 114.42% year-on-year to $15.61 billion from $7.28 billion in the same period of 2025. Consequently, FPI accounted for 95.12% of total capital importation during the five-month period, up from 89.54% in the corresponding period of 2025.
In contrast to the growth in FPI, Foreign Direct Investment (FDI) and Other Investments recorded declines during the period. FDI fell to $190 million in the five months to May 2026 from $210 million in the same period of 2025, representing a 9.5% decrease. Similarly, Other Investments, comprising foreign loans and trade credits, declined to $600 million from $650 million, indicating a 7.69% drop.
On a month-on-month basis, total capital importation experienced fluctuations. It declined by 14.8% to $3.0 billion in February from $3.52 billion in January. However, it rebounded by 28.3% to $3.85 billion in March before falling by 26.8% to $2.82 billion in April. Capital inflows recovered in May, rising by 14.2% to $3.22 billion, with movements in FPI accounting for most of the volatility in total monthly inflows.
A closer look at FPI revealed that it followed a similar pattern of fluctuations. FPI fell by 14.8% month-on-month to $2.87 billion in February from $3.37 billion in January. It then rose by 26.1% to $3.62 billion in March but subsequently declined by 26.5% to $2.66 billion in April. FPI rebounded by 16.2% to $3.09 billion in May, indicating some stability in foreign portfolio investments.
In contrast, FDI exhibited a relatively stable trend, albeit at a lower level. It rose by 33.3% month-on-month to $40 million in February from $30 million in January and increased further by 50% to $60 million in March. However, it fell by 50% to $30 million in April and remained unchanged in May. This suggests that FDI is yet to regain its momentum.
The outlook for Nigeria's capital inflows appears promising, driven largely by FPI. However, the decline in FDI and Other Investments raises concerns about the sustainability of this growth. As the country continues to navigate its economic challenges, it is essential to implement policies that encourage foreign investment and promote economic diversification. The CBN's reports will continue to provide valuable insights into Nigeria's economic performance.
Key points
- Nigeria's capital inflow surged 101.8% year-on-year to $16.41 billion in the five months to May 2026.
- Foreign Portfolio Investment (FPI) accounted for 95.12% of total capital importation during the five-month period.
- Foreign Direct Investment (FDI) and Other Investments recorded declines of 9.5% and 7.69%, respectively, during the period.
