Nigeria’s banks have become central to a wave of foreign investment, handling $16.78 billion in capital inflows between January and September 2025.
This amount surpasses the $7.24 billion recorded in the same period in 2024, highlighting renewed investor confidence.
Banks Surging Capital Inflows
According to the National Bureau of Statistics, foreign investors channeled 97% of these inflows through portfolio investments, while they directed only 3.3% into foreign direct investments.
Consequently, banks acted mainly as conduits rather than final recipients of funds.
Quarterly Growth Trends
Quarterly figures demonstrate the growth.
In Q1, investors injected $5.64 billion, up 67% from 2024.
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Then in Q2, inflows rose to $5.12 billion, nearly doubling the $2.60 billion from the previous year.
By Q3, inflows soared to $6.01 billion, a 380% increase from Q3 2024.
Most capital, $13.6 billion, flowed into bonds and money market instruments, while only $590 million went into equities.
In November, CBN Governor Olayemi Cardoso revealed that foreign investors brought $20.98 billion into Nigeria over ten months, marking a 70% rise over 2024 and 428% over 2023.
Banking Sector Leadership
Standard Chartered Bank received the largest share in Q3 with $2.115 billion, followed by Stanbic IBTC and Citibank.
Together, the three handled 80% of Q1 inflows.
The banking sector captured $3.14 billion in Q3, or 52% of total inflows, while financing attracted $1.86 billion, and production/manufacturing gained $261 million.
The UK contributed $2.94 billion, the US $950 million, and South Africa $774 million.
Analysts warn that heavy reliance on portfolio investments may limit long-term sustainability.
Nevertheless, Nigerian banks remain vital gateways, reflecting renewed international trust and investor appetite.
