Foreign portfolio investment in Nigeria rose by 14.4 per cent in the first quarter of 2026 as international investors increased their holdings of Nigerian equities and other financial assets.
Portfolio inflows reached $6.03bn during the three months to March, up from $5.27bn in the final quarter of 2025, according to the Central Bank of Nigeria’s Q1 2026 Economic Report.
Portfolio investment accounted for the largest share of Nigeria’s $7.22bn financial liabilities during the quarter, underlining the growing role of foreign investors in the country’s capital markets.
The latest figures also highlight the widening difference between portfolio and direct investment. Foreign portfolio flows were almost six times the $1.03bn recorded in direct investment liabilities during the period.
Direct investment liabilities declined by 7.09 per cent from the previous quarter, while other investment liabilities stood at $220m.
The figures indicate that a significant proportion of foreign capital entering Nigeria during the quarter was channelled into tradable financial assets rather than longer-term investments involving ownership or operational commitments.
The CBN attributed the increase in portfolio investment largely to higher foreign purchases of Nigerian equities.
The stronger inflow coincided with an improvement in Nigeria’s external position. Total foreign exchange inflows increased by 13.26 per cent to $31.34bn in the first quarter, from $27.67bn in the preceding quarter.
Meanwhile, foreign exchange outflows fell by 11.78 per cent to $11.01bn.
As a result, net foreign exchange inflows rose to $20.33bn, compared with $15.19bn in the fourth quarter of 2025.
Autonomous sources accounted for $21.15bn of total foreign exchange inflows, representing a 23.90 per cent quarter-on-quarter increase.
According to the CBN, net inflows from autonomous sources reached $17.53bn, more than six times the $2.80bn recorded through the CBN and banking system combined.
Nigeria’s stronger external position was also reflected in its foreign exchange reserves. Reserves stood at $48.35bn at the end of March, up from $45.75bn at the end of December 2025.
The reserve position provided about 8.84 months of import cover, well above the three-month benchmark commonly used to gauge external liquidity.
Despite the increase in portfolio inflows, Nigeria’s foreign financial obligations also expanded during the quarter.
Total international financial liabilities rose to $226.58bn from $220.82bn, while portfolio investment liabilities increased by 14.08 per cent to $58.01bn, making them the fastest-growing component.
Direct investment liabilities remained the largest category at $90.38bn, followed by other investment liabilities at $78.03bn.
Nigeria’s international financial assets stood at $127.34bn, leaving the country with a negative net international investment position of $99.24bn.
The increase in portfolio flows coincided with strong demand for naira-denominated securities.
Central Bank of Nigeria Open Market Operations bills attracted N35.62tn in subscriptions against N9tn offered, while Nigerian Treasury Bills received N24.93tn in bids for N7.97tn on offer.
The heavy demand for government and central bank securities points to strong investor interest in Nigerian fixed-income instruments, although the CBN’s financial account data indicates that equities accounted for a substantial part of the increase in overall portfolio investment.
The development comes as Nigeria seeks to deepen foreign participation in its domestic capital markets and improve access to international sources of finance.
However, the increased foreign participation comes against the backdrop of a sizeable public debt burden. Nigeria’s consolidated public debt stood at N159.27tn at the end of December 2025, equivalent to 36.94 per cent of gross domestic product.
