Cardoso
By Tosin Ogunrinde
Nigeria’s foreign capital inflows have surged to $20.9 billion in the first ten months of 2025, a striking jump that the Central Bank Governor, Olayemi Cardoso, highlighted as a clear sign of renewed investor confidence. The figure represents a 70 % increase over the same period last year and dwarfs the $4 billion recorded in the first ten months of 2023, underscoring a dramatic turnaround in the country’s external financing landscape.
The bulk of the inflows came from foreign direct investment and portfolio flows, with a notable uptick in diaspora remittances that pushed the total well above the $20 billion mark. Analysts point out that the composition reflects a broader diversification, as non‑oil sectors—particularly telecommunications, fintech and renewable energy—attracted significant foreign interest, helping to offset the traditionally oil‑dominant inflow pattern.
Several policy moves appear to have paved the way for this capital rush. The CBN’s unification of the foreign‑exchange market, the introduction of the Electronic Foreign Exchange Management System, and the removal of Nigeria from the FATF grey list have all restored a measure of transparency and predictability. These reforms have made it easier for investors to repatriate profits and have boosted confidence in the naira’s stability.
The influx has also bolstered Nigeria’s foreign‑reserve cushion, which now stands at about $46.7 billion—enough to cover more than ten months of imports. This reserve build‑up has helped the naira hold steady against the dollar, easing some of the pressure that had previously led to sharp depreciations and giving the government more leeway to manage external debt obligations.
Market participants and policymakers alike are cheering the development. Finance Minister Wale Edun described the inflow as “a vote of confidence in our reform agenda,” while the Nigerian Stock Exchange saw a 12 % rise in the benchmark index in the month following the announcement, reflecting the positive sentiment spilling over into domestic equities.
Looking ahead, the government expects the momentum to continue, with the CBN forecasting an additional $5–$7 billion in inflows by year‑end if current policies remain on track. However, challenges remain, including the need to sustain macroeconomic stability, address inflationary pressures and further improve the ease of doing business. If those hurdles are managed, the capital surge could translate into lasting gains for the Nigerian economy.
