Foreign investors shift focus to bonds as FDI drops sharply
Foreign direct investment (FDI) into Nigeria has fallen significantly, with investors showing a strong preference for bonds and money market instruments. The latest report from the Central Bank of Nigeria (CBN) highlights a sharp decline in FDI, even as total capital inflows into the country have increased. Bola Tinubu has expressed optimism about attracting more FDI, citing ongoing reforms. The data suggests that while foreign investors are returning, they remain cautious about long-term commitments.
TLDR
- FDI into Nigeria dropped by 80 per cent in January 2026, falling to $30m from $150m in December 2025.
- Foreign portfolio investment surged to $3.37bn in January 2026, up from $940m in December 2025, showing a strong preference for bonds.
- The banking industry attracted 75.15 per cent of foreign capital inflows in January 2026.
- Nigeria's external reserves rose to $48.88bn in January 2026, providing 8.93 months of import cover.
- Bola Tinubu stated that Nigeria is on track to attract close to $20bn in FDI in 2026, attributing this to regulatory reforms and macroeconomic stability.
