Nigeria Records $5.6bn Capital Inflows in Q1 2025 Amid CBN Reforms

Nigeria saw a significant increase in capital inflows, reaching $5.6 billion in the first quarter of 2025, a 67% surge from the same period in 2024. The National Bureau of Statistics (NBS) reported that the banking sector led the inflow with $2 billion, followed by financing with $1 billion.

The United Kingdom was the largest source of inflow, contributing $2 billion. Analysts attribute this sharp rise to sweeping monetary reforms by the Central Bank of Nigeria (CBN) Governor Olayemi Cardoso, including clearing the forex backlog, stabilizing the naira, and reducing market intervention.

Portfolio investments dominated with $4 billion, while foreign direct investment remained weak at $2 million. The CBN mentioned that banking recapitalization is underway to support President Bola Tinubu's target of a $1 trillion GDP by 2030.

Experts describe the Q1 surge as a major boost to investor confidence.