Foreign capital inflows into banking sector hit five-year high in 2024

Foreign capital inflows into Nigeria's banking sector reached a five-year high in 2024, totaling billions, the highest annual figure since 2019. This surge in inflows coincided with increased recapitalization efforts by Nigerian banks following new capital requirements set by the Central Bank of Nigeria in 2024.

Quarterly data for 2024 showed a significant recovery in the sector, with inflows reaching their strongest performance ever recorded. Despite a slight decline from the peak in Q4 2024, the sector continued to attract substantial foreign capital, with Q1 2025 seeing inflows of billions.

The banking sector dominated Nigeria's capital importation landscape in Q1 2025, bringing in billions alone, far surpassing other sectors. This trend indicates a potential leveling off after a period of rapid capital mobilization.