ABUJA, Nigeria (VOICE OF NAIJA)-Nigeria’s capital importation rose sharply to $10.37bn in the first quarter of 2026, driven largely by portfolio investments, which accounted for more than 95 per cent of total inflows.
Reacting to the development, financial expert and former President of the Chartered Institute of Bankers of Nigeria, Okechukwu Unegbu, said the increase was fuelled by foreign investors seeking short-term gains in the capital market rather than long-term economic opportunities.
According to the National Bureau of Statistics, total capital importation increased from $5.64bn recorded in the corresponding period of 2025 and also rose by 60.97 per cent from the $6.44bn posted in the fourth quarter of 2025.
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The report showed that portfolio investment contributed $9.86bn, representing 95.09 per cent of total capital importation, while Other Investment accounted for $374.48m, or 3.61 per cent.
Foreign Direct Investment recorded the smallest share at $135.08m, representing 1.30 per cent of total inflows.
Unegbu attributed the surge to growing investor interest in Nigeria’s stock market and the search for higher returns amid improving global market conditions.
“What has happened is that the stock market is on the upswing globally and investors are moving funds from areas with lower returns to places where they can make more money.
“The Nigerian stock market has shown an upward trend and many investors came in to take advantage of the opportunity to earn quick capital gains.”
While acknowledging the increase in capital inflows, he argued that most of the investments were short-term in nature and unlikely to generate significant employment or support sustainable economic growth.
“From my analysis, the investments were largely short-term. Investors came in to take advantage of the gains available in the capital market and then move out with their profits.
“That is why portfolio investment accounts for about 95 per cent of the total inflow because they are short to mid-term investments, while long-term investment represented by Foreign Direct Investment is only about 1.3 per cent.”
He said the dominance of portfolio investment reflects limited confidence in the long-term prospects of the Nigerian economy.
Unegbu also maintained that the rise in capital importation had yet to translate into noticeable improvements in the welfare of Nigerians.
“If the inflows were making a significant impact, we would expect improvements in employment, inflation and other economic indicators.
“However, unemployment remains high, inflation remains elevated and interest rates have also increased.
“These suggest that the inflows did not impact positively on the Nigerian economy.”
He further linked the low level of foreign direct investment to concerns over insecurity and macroeconomic instability.
“Security is one of the most important issues. No serious investor wants to commit long-term funds in an environment where kidnapping, killings and banditry remain major concerns.
“If the government addresses the security challenges and creates stability in the system, investors will be more willing to invest and let their money stay longer and mature for longer-term gains through long-term investment.”
Unegbu urged the Federal Government to strengthen security and implement policies that promote economic stability, saying both factors are crucial to attracting long-term investments.
“The government must work towards improving economic stability and addressing security concerns.
“These are critical factors that will help build investor confidence and attract more long-term investments into Nigeria.”