The United Kingdom retained its position as Nigeria’s largest source of foreign capital in the first quarter of 2026, accounting for nearly half of all capital imported into the country, according to the latest Capital Importation Report released by the National Bureau of Statistics.
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.
