Nigeria recorded a 90 percent surge in capital inflows in 2025, signalling a strong return of foreign investor interest driven by attractive yields in local financial markets, according to Reuters.
Total inflows rose to $23.22 billion, up from $12.32 billion in 2024, with foreign portfolio investment accounting for the bulk at $19.74 billion, reflecting heightened demand for Nigerian assets offering high returns.
Most of the inflows were directed into money market instruments, bonds, and equities, as investors capitalised on elevated interest rates following recent economic reforms and tighter monetary policy.
However, foreign direct investment remained relatively subdued, rising only modestly, indicating continued caution among long-term investors despite improved market conditions.
Analysts say the surge highlights Nigeria’s growing appeal as a high-yield destination, but warn that reliance on short-term portfolio flows could expose the economy to volatility if global financial conditions shift.

