Banking Sector Pulls in 55% of Nigeria’s Q1 Capital Inflows as CBN Reforms Pay Off
Foreign investors are betting big on Nigeria again — and the banking sector is leading the charge.
According to fresh data from the National Bureau of Statistics (NBS), Nigeria attracted $5.64 billion in capital inflows in the first quarter of 2025 — a 67% jump from the same period last year. Over half of that money ($3.1 billion) went straight into the banking sector, making it the country’s top investment magnet.
Why the sudden investor love?
Reforms from the Central Bank of Nigeria (CBN) — including the unification of forex windows, clearing of a $7bn backlog, and currency market liberalisation — have stabilised the financial sector and restored confidence. The World Bank even called these moves “bold steps” toward long-term stability.
Key highlights from the NBS report:
• Banking sector: $3.1bn inflows (55.44%)
• Financing sector: $2.09bn (37.18%)
• Manufacturing: $129.92m (2.3%)
• Portfolio investments dominated, making up 92% of total inflows, with heavy interest in money market instruments, bonds, and equities.
• The UK was the top source of capital, contributing $3.68bn (65.26%).
Bigger picture:
CBN Governor Olayemi Cardoso is pushing for bank recapitalisation to prepare lenders for Nigeria’s ambitious goal of becoming a $1 trillion economy by 2030. Economic analysts say the reforms, GDP rebasing, and new sector data will help attract even more foreign capital — but warn that structural issues like power supply, infrastructure gaps, and ease of doing business must also be addressed.
Bottom line:
Nigeria’s banking sector is proving to be the jewel in the crown for foreign investors. If the momentum continues — and reforms deepen — the sector could play a pivotal role in turning Nigeria’s trillion-dollar economy dream into reality.
Foreign investors are betting big on Nigeria again — and the banking sector is leading the charge.
According to fresh data from the National Bureau of Statistics (NBS), Nigeria attracted $5.64 billion in capital inflows in the first quarter of 2025 — a 67% jump from the same period last year. Over half of that money ($3.1 billion) went straight into the banking sector, making it the country’s top investment magnet.
Why the sudden investor love?
Reforms from the Central Bank of Nigeria (CBN) — including the unification of forex windows, clearing of a $7bn backlog, and currency market liberalisation — have stabilised the financial sector and restored confidence. The World Bank even called these moves “bold steps” toward long-term stability.
Key highlights from the NBS report:
• Banking sector: $3.1bn inflows (55.44%)
• Financing sector: $2.09bn (37.18%)
• Manufacturing: $129.92m (2.3%)
• Portfolio investments dominated, making up 92% of total inflows, with heavy interest in money market instruments, bonds, and equities.
• The UK was the top source of capital, contributing $3.68bn (65.26%).
Bigger picture:
CBN Governor Olayemi Cardoso is pushing for bank recapitalisation to prepare lenders for Nigeria’s ambitious goal of becoming a $1 trillion economy by 2030. Economic analysts say the reforms, GDP rebasing, and new sector data will help attract even more foreign capital — but warn that structural issues like power supply, infrastructure gaps, and ease of doing business must also be addressed.
Bottom line:
Nigeria’s banking sector is proving to be the jewel in the crown for foreign investors. If the momentum continues — and reforms deepen — the sector could play a pivotal role in turning Nigeria’s trillion-dollar economy dream into reality.