By Babajide Komolafe
Capital importation into the country rose by 101.8 per cent, year-on-year, YoY to $16.41 billion in the five months to May 2026 from $8.13 billion in the same period of 2025.
Vanguard analysis of the monthly economic reports of the Central Bank of Nigeria, CBN, from January to May 2026, showed that the growth in capital importation was driven by Foreign Portfolio Investment, FPI, which rose by 114.42 per cent, YoY to $15.61 billion in 5M’26 from $7.28 billion in 5M’25.
Consequently, FPI’s share of total capital importation expanded further to 95.12 per cent in 5M’26 from 89.54 per cent in 5M’25.
However, Foreign Direct Investment (FDI) and Other Investments recorded marginal declines of 9.5 per cent and 7.69 per cent, YoY, respectively, in 5M ‘26.
FDI dropped to $0.19 billion in 5M’26 from $0.21 billion in 5M’25. Similarly, Other Investments — comprising foreign loans and trade credits — fell to $0.60 billion in 5M’26 from $0.65 billion in 5M’25.
On a month-on-month, MoM, basis, total capital importation declined by 14.8 per cent to $3.0 billion in February from $3.52 billion in January. It, however, rebounded strongly by 28.3 per cent to $3.85 billion in March, before declining by 26.8 per cent to $2.82 billion in April. Capital importation recovered again in May, rising by 14.2 per cent to $3.22 billion.
The monthly trend showed that the volatility in total capital importation was largely driven by movements in FPI, which accounted for more than 90 per cent of total inflows in each of the five months.
FPI declined by 14.8 per cent MoM to $2.87 billion in February from $3.37 billion in January. It subsequently surged by 26.1 per cent to $3.62 billion in March, before falling by 26.5 per cent to $2.66 billion in April. In May, FPI rebounded by 16.2 per cent to $3.09 billion.
FDI rose by 33.3 per cent MoM to $0.04 billion in February from $0.03 billion in January and increased further by 50 per cent to $0.06 billion in March. It then fell by 50 per cent to $0.03 billion in April and remained unchanged at $0.03 billion in May.
Other Investments also fluctuated during the period. Inflows declined by 25 per cent MoM to $0.09 billion in February from $0.12 billion in January, before rising sharply by 77.8 per cent to $0.16 billion in March. The inflow subsequently fell by 12.5 per cent to $0.14 billion in April and declined further by 35.7 per cent to $0.09 billion in May.
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