The NBS report showed that capital inflows from the UK reached $5.08 billion between January and March 2026, representing 49.01 per cent of the total $10.37 billion capital imported into Nigeria during the period.

The UK outperformed other major investment sources, with the United States ranking second after contributing $3.18 billion, equivalent to 30.69 per cent of total inflows. The Republic of South Africa followed with $983.83 million, accounting for 9.49 per cent.

Nigeria recorded a significant increase in capital importation during the quarter, with total inflows rising by 83.83 per cent compared to the $5.64 billion recorded in the first quarter of 2025.

On a quarter-on-quarter basis, inflows also grew by 60.97 per cent from the $6.44 billion recorded in the fourth quarter of 2025.

A breakdown of the inflows revealed that foreign investors continued to favour portfolio investments, which accounted for $9.86 billion or 95.09 per cent of total capital imported during the quarter.

Other investments, including loans and trade credits, contributed $374.48 million, representing 3.61 per cent of total inflows, while Foreign Direct Investment (FDI) accounted for just $135.08 million, or 1.30 per cent of the total.

Sectoral analysis showed that the banking industry remained the primary destination for foreign capital, attracting $7.55 billion, equivalent to 72.79 per cent of total inflows. The financing sector followed with $2.43 billion or 23.42 per cent, while the production and manufacturing sector received $152.27 million, representing 1.47 per cent.

Among financial institutions facilitating capital importation, Standard Chartered Bank recorded the highest volume, handling $4.41 billion or 42.56 per cent of total inflows. Stanbic IBTC Bank followed with $2.78 billion, representing 26.79 per cent, while Rand Merchant Bank facilitated $930.82 million, accounting for 8.97 per cent.

The latest figures suggest sustained confidence among foreign investors, particularly portfolio investors, in Nigeria’s financial markets amid ongoing economic reforms and efforts to stabilise the macroeconomic environment.

However, analysts note that the dominance of short-term portfolio investments and the relatively low level of foreign direct investment highlight the need for policies that attract long-term capital into productive sectors such as manufacturing, infrastructure, technology, and industrial development.

While rising capital inflows are expected to support foreign exchange liquidity and strengthen investor sentiment, experts argue that increasing the share of direct investment will be critical to driving sustainable economic growth, job creation, and industrial expansion.

However, the Foreign Direct Investments (FDI) component stood at $47.6 million, indicating a 43.48 percent decline compared to the $84.23 million recorded in Q4 2022, according to a CSEA Africa post.

This also represents the fourth decline in five successive quarters, and a year-on-year decline of over 69 percent compared to $154.97 million in Q1 2022.

The FDI which is the amount of assets commitments of foreigners is an essential factor to growth and development of the economy, as it contributes to employment creation and expansion in output.

This decline, therefore, suggests a persistent drop in foreign investors’ confidence in the economy and could be attributed to some infrastructural gaps in the economy and unstable exchange rates, but more significantly, the political uncertainties in the build-up to the country’s 2023 general elections.

This has implications for overall economic performance and may continue to fall or stay at a low level until the election petitions are over.

Therefore, the government should provide an enabling business environment for foreign investors to come in and retain those available by addressing infrastructural deficits that increase the cost of business operations and eliminating unhealthy regulations that prevent easy repatriation.

It is also essential to address insecurity challenges and to develop a consistent long-term master plan that will direct investment promotion strategies in the country.

There is a need for the government to create an enabling environment for foreign investments, as this contributes a significant proportion of the revenue inflow for the country.

Ultimately, there is a need to improve subnational investment agencies and assist them in enacting business-friendly policies necessary to attract international investments.