Business
Capital Inflow: Recent 67% Increase To Attract FDI
Nigeria recorded total capital inflows of $5.64 billion in Q1 2025, a 67% increase from the $3.38 billion posted in the previous quarter.
However, capital importation data from the National Bureau of Statistics (NBS) reveals that over 90% of these inflows were driven by hot money short-term speculative funds seeking high returns.
A closer look shows that $4.21 billion, or 74.6% of the total, was channelled into money market instruments, primarily OMO bills and Treasury Bills both short-term securities issued by the Central Bank of Nigeria to manage liquidity.
These instruments have become increasingly attractive to foreign investors amid Nigeria’s elevated interest rate environment, forming the core of capital inflows aimed more at stabilising the naira than funding long-term economic activity.
©Nairametrics
