Nigeria records $20.98bn foreign capital inflow in 10 months – Cardoso

Nigeria has attracted a total of $20.98 billion in foreign capital inflows over the first ten months of 2025, reflecting a growing investor confidence in the country’s economic prospects and financial markets, according to financial strategist Cardoso. The figure underscores the resilience of the Nigerian economy, the effectiveness of policy reforms, and the increasing appeal of local markets to foreign portfolio and direct investors alike.

The inflows are reported to have spanned multiple sectors, including banking, manufacturing, telecommunications, and the capital markets, highlighting the diversity of investment interest in Nigeria. Analysts note that foreign capital plays a critical role in bolstering liquidity in equity and bond markets, supporting industrial expansion, and fostering economic growth. The sustained inflows also signal global investor optimism about Nigeria’s fiscal management, regulatory stability, and growth potential.

Cardoso explained that significant portions of the funds were directed to the Nigerian Exchange (NGX) through portfolio investments, including equities and government bonds. Investors were reportedly attracted by rising yields, relatively stable foreign exchange rates, and the increasing transparency and efficiency of the country’s financial markets. The inflows, he noted, have also contributed to strengthening foreign reserves and supporting macroeconomic stability.

In addition to portfolio investments, the country received foreign direct investments in strategic sectors such as infrastructure, energy, and manufacturing. These investments are aimed at expanding production capacity, creating jobs, and promoting technology transfer, further reinforcing Nigeria’s industrial base and economic diversification efforts. The trend indicates that international investors are not only seeking short-term gains but also long-term growth opportunities in the Nigerian market.

Economists point out that foreign capital inflows have multiple positive effects on the domestic economy. By increasing liquidity, they facilitate access to credit, support government borrowing needs, and improve market efficiency. Furthermore, inflows enhance the country’s external position by strengthening foreign reserves, providing a buffer against external shocks, and supporting currency stability. This has a direct impact on import financing and helps maintain investor confidence in local markets.

The inflows also reflect the broader impact of Nigeria’s economic reforms, including improved fiscal management, banking sector stability, and regulatory enhancements in the capital market. Policy measures such as easing access to foreign exchange for investors, strengthening legal protections, and promoting transparency have been instrumental in attracting global capital. Analysts argue that sustained implementation of these reforms will be essential to maintain and grow foreign investor interest.

Cardoso further noted that the inflows have contributed to job creation, infrastructure development, and expansion of business activities across the country. By channeling foreign funds into productive sectors, Nigeria benefits not only from capital growth but also from the multiplier effects on employment, technology adoption, and industrial expansion. This demonstrates how strategic investment inflows can drive both macroeconomic stability and grassroots economic development.

Despite the encouraging trends, analysts caution that continued inflows depend on maintaining policy consistency, political stability, and investor confidence. Potential risks such as exchange rate volatility, inflationary pressures, and global market fluctuations could affect foreign investment patterns. Therefore, ongoing reforms and robust economic management are critical to sustaining investor interest and ensuring that inflows continue to support long-term growth.

Financial market experts also emphasized the importance of leveraging the inflows to promote domestic investment and strengthen local capital markets. By creating avenues for reinvestment, facilitating local participation, and encouraging corporate governance, Nigeria can maximize the developmental impact of foreign capital while mitigating exposure to sudden outflows.

In conclusion, Nigeria’s attraction of $20.98 billion in foreign capital within ten months underscores the growing global confidence in its economy. The inflows reflect the combined effect of economic reforms, market opportunities, and investor optimism. Stakeholders argue that sustaining this momentum will require continued transparency, policy consistency, and strategic initiatives to integrate foreign capital into long-term development objectives.

 

The strong inflow of funds is expected to support economic recovery, boost investment in key sectors, and enhance Nigeria’s position as a viable destination for global capital, signaling positive prospects for the country’s financial and industrial landscape in the coming years.