Nigeria’s Capital Inflow Hits $2.82bn in April

Nigeria’s capital inflow rose sharply year-on-year to $2.82 billion in April 2026, signalling stronger investor confidence in the economy.

The figure represents a 256.9 per cent increase from the $0.79 billion recorded in April 2025, according to the Central Bank of Nigeria (CBN).

However, capital inflow fell 26.7 per cent month-on-month from $3.85 billion in March. The decline largely reflected weaker foreign portfolio investment (FPI), foreign direct investment (FDI) and other investments.

The CBN said FPI fell to $2.66 billion from $3.62 billion in March, mainly because investors reduced purchases of money market instruments and bonds. Other investment, largely loans, also dropped to $0.14 billion from $0.16 billion, while FDI declined to $0.03 billion from $0.06 billion.

Despite the monthly decline, foreign portfolio investment remained the dominant source of funds. It accounted for 94.13 per cent of total inflows, compared with 4.89 per cent for other investments and 0.98 per cent for FDI.

The banking sector received the largest share of Nigeria’s capital inflow, accounting for 68.26 per cent. Financing followed with 26.54 per cent, while shares and telecommunications attracted 1.68 per cent and 1.05 per cent respectively.

Lagos remained the leading destination, receiving 61.92 per cent of total inflows. The Federal Capital Territory followed with 37.74 per cent, while Akwa Ibom received 0.21 per cent. Kano and Ogun each accounted for 0.04 per cent, with other states receiving the balance.

Meanwhile, capital outflows fell significantly during the month. Outflows dropped to $2.21 billion in April from $4.33 billion in March.

The figures show a strong annual improvement in capital inflow, although the monthly decline highlights continued sensitivity to movements in portfolio investment and other external funding sources.

What measures could help Nigeria attract more stable long-term investment beyond portfolio inflows?