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Foreign capital inflows into Nigeria’s banking sector recorded a significant increase of 93.25 per cent year-on-year, reaching $13.53bn in 2025 from $7.00bn in 2024, driven by ongoing recapitalisation efforts led by the Central Bank of Nigeria (CBN).
According to data from the National Bureau of Statistics (NBS), the banking sector remained the largest recipient of foreign investment, accounting for $13.53bn out of the total $23.22bn capital importation recorded in 2025. This represents 58.26 per cent of total inflows, up from 56.81 per cent in the previous year.
The strong performance reflects heightened investor confidence in Nigeria’s financial system, supported by regulatory reforms and stricter regulatory compliance requirements tied to the banking sector recapitalisation programme. The development also underscores the growing importance of risk assessment, financial compliance, and regulatory reporting in attracting global capital.
A quarterly breakdown shows sustained inflows throughout 2025. In the first quarter, inflows rose to $3.13bn, marking a 51.3 per cent increase from $2.07bn recorded in Q1 2024. This upward trend continued in the second quarter, where inflows surged to $3.41bn, representing a 203.2 per cent increase year-on-year.
In the third quarter, the sector recorded $3.14bn in inflows, a substantial 442.2 per cent rise from $579.48m in the corresponding period of 2024. The fourth quarter maintained momentum, with inflows reaching $3.85bn, up 19.2 per cent from $3.23bn recorded in Q4 2024.
The banking sector consistently dominated total capital importation across all quarters, accounting for 55.44 per cent in Q1, peaking at 66.56 per cent in Q2, moderating to 52.25 per cent in Q3, and rising again to 59.75 per cent in Q4. This trend highlights the sector’s central role in driving Nigeria’s capital inflows, supported by enhanced regulatory monitoring and evolving regulatory framework standards.
In contrast, capital inflows into equities declined by 16.8 per cent year-on-year to $271.42m in 2025, compared to $326.04m in 2024. While the first quarter recorded a modest increase to $115.26m, subsequent quarters experienced volatility, reflecting shifting investor preferences and ongoing risk mitigation considerations.
Meanwhile, financing-related inflows recorded a remarkable 424.9 per cent growth, rising to $6.77bn in 2025 from $1.29bn in 2024. This surge was driven by strong performance across all quarters, particularly in Q1 and Q3, reinforcing the role of structured financing and improved compliance management systems in supporting capital mobilisation.
Overall, Nigeria’s total capital importation increased by 88.5 per cent to $23.22bn in 2025, compared to $12.32bn recorded in 2024. Quarterly data showed consistent growth, with inflows reaching $5.64bn in Q1, $5.12bn in Q2, $6.01bn in Q3, and $6.44bn in Q4.
The data further indicate that the banking sector not only attracted the largest share of foreign investment but also served as the primary driver of overall capital inflows. This growth has been supported by ongoing reforms, improved transparency, and stronger adoption of compliance technology and RegTech solutions across financial institutions.
Earlier, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, disclosed that 32 banks have already met the revised capital requirements under the recapitalisation programme, ahead of the March 31, 2026 deadline.
According to him, the programme has significantly strengthened the resilience of the banking sector, positioning it to mobilise long-term capital, support productive investments, and enhance Nigeria’s economic growth trajectory.
The apex bank also revealed that Nigerian banks have raised a total of N4.61tn under the recapitalisation initiative, with approximately 27 per cent sourced from foreign investors. This reflects increasing global confidence in Nigeria’s financial system and the effectiveness of its evolving regulatory compliance framework.
The continued inflow of foreign capital highlights the critical role of regulatory risk management, compliance analytics, and RegTech innovations in strengthening investor trust and supporting the long-term stability of Nigeria’s banking sector.
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