Nigeria saw capital inflows soar nearly 90% in 2025, reaching $23.22 billion as foreign investors returned to chase high bond yields following recent economic reforms. Portfolio investment led the charge, accounting for roughly 85% of total inflows. Investors flooded into high-yielding money market instruments and bonds, with bond inflows jumping nearly fivefold. The United Kingdom emerged as the top source, supplying 58% of all inflows. However, foreign direct investment—the kind that builds factories and creates lasting jobs—rose only modestly to $923 million, signaling lingering caution about long-term commitments. Analysts say the trend reflects renewed investor interest, but it is one still heavily tied to short-term returns. According to these experts, this leaves the nation’s economy exposed to shifting global financial winds.
CNBC Africa
