Nigeria recorded a sharp increase in capital importation in April 2026, with total inflows rising by 256.9 per cent year-on-year to $2.82 billion, according to the Central Bank of Nigeria, CBN. The figure represents a significant increase from the $0.79 billion recorded in April 2025, suggesting stronger investor confidence in the Nigerian economy despite a month-on-month decline.
According to the CBN’s latest Economic Report, total capital inflows fell by 26.7 per cent from $3.85 billion recorded in March 2026 to $2.82 billion in April. The decline was attributed mainly to reduced foreign portfolio investment, foreign direct investment and other forms of investment during the month.
The apex bank said foreign portfolio investment remained the dominant component of capital importation, although inflows declined from $3.62 billion in March to $2.66 billion in April. It attributed the reduction to lower purchases of money market instruments and bonds.
Similarly, other investments, mainly loans, dropped from $0.16 billion to $0.14 billion, while foreign direct investment fell from $0.06 billion in March to $0.03 billion in April. Despite the declines across the three categories, portfolio investment accounted for 94.13 per cent of total capital inflows during the period. Other investments represented 4.89 per cent, while FDI accounted for only 0.98 per cent of the total.
The CBN report showed that the banking sector remained the biggest beneficiary of foreign capital during the month. The sector received 68.26 per cent of total inflows, followed by financing, which accounted for 26.54 per cent. The shares sector attracted 1.68 per cent, while telecommunications received 1.05 per cent.
The remaining capital inflows were distributed among other sectors of the economy. The geographical distribution also showed a strong concentration of foreign capital in a few locations. Lagos remained the leading destination, receiving 61.92 per cent of total capital inflows.
The Federal Capital Territory followed closely with 37.74 per cent, while Akwa Ibom attracted 0.21 per cent. Kano and Ogun states each accounted for 0.04 per cent, with the remaining inflows distributed across other states. The figures highlight the continued dominance of Lagos and Abuja as Nigeria’s major destinations for foreign capital, particularly for financial and corporate activities.
Meanwhile, Nigeria recorded a substantial reduction in capital outflows during the month under review. The CBN said capital outflows dropped to $2.21 billion in April from $4.33 billion in March 2026. The combination of stronger year-on-year capital inflows and lower outflows points to a notable improvement in Nigeria’s capital flow position compared with the corresponding period of the previous year.
However, the heavy dependence on portfolio investment remains significant, as foreign direct investment accounted for less than one per cent of total inflows during the month. The April figures therefore present a mixed picture: Nigeria attracted substantially more foreign capital than it did a year earlier, but monthly inflows weakened and remained heavily concentrated in short-term or portfolio-related investments.
