Nigeria attracted over five and a half billion dollars in capital during the first quarter of this year, reflecting a 67 percent surge from the corresponding period in 2024 and marking continued confidence in economic reforms led by Central Bank Governor Olayemi Cardoso. Portfolio investment accounted for more than 90 percent of total inflows, with the banking and financing sectors capturing the bulk of foreign participation. The United Kingdom supplied nearly two-thirds of incoming funds.
S&P's improved outlook and progress toward clearing foreign exchange backlogs have strengthened investor sentiment and reduced borrowing costs for the government. Economists note that recent GDP rebasing exercises reveal previously uncounted sectors and provide a more accurate foundation for fiscal planning, though they caution that statistical adjustments alone cannot address underlying challenges such as infrastructure deficits and security concerns. Authorities expect sustained capital flows to support the administration's goal of reaching a trillion-dollar economy by the end of the decade.
S&P's improved outlook and progress toward clearing foreign exchange backlogs have strengthened investor sentiment and reduced borrowing costs for the government. Economists note that recent GDP rebasing exercises reveal previously uncounted sectors and provide a more accurate foundation for fiscal planning, though they caution that statistical adjustments alone cannot address underlying challenges such as infrastructure deficits and security concerns. Authorities expect sustained capital flows to support the administration's goal of reaching a trillion-dollar economy by the end of the decade.
