Nigeria recorded a significant increase in foreign portfolio investment inflows in the first quarter of 2026, with inflows rising 14.4% to $6.03 billion, according to the Central Bank of Nigeria’s (CBN) Q1 2026 Economic Report.
The figure represents an increase of about $760 million from the $5.27 billion recorded previously, making portfolio investment the largest component of Nigeria’s gross financial liabilities during the quarter.
The CBN report showed that the country recorded a gross incurrence of financial liabilities of $7.22 billion during the quarter, while net incurrence stood at $2.51 billion.
Portfolio investment accounted for the bulk of the liabilities, driven largely by increased foreign purchases of Nigerian equities and other financial securities.
By comparison, direct investment liabilities stood at $1.03 billion, representing a 7.09% decline from the previous quarter, while other investment liabilities amounted to $220 million.
The latest data indicates that portfolio flows into Nigeria were almost six times the size of direct investment liabilities during the period, highlighting the stronger role of foreign holdings of Nigerian financial assets in the country’s external financial position.
The increase in portfolio inflows occurred against the backdrop of improved external-sector conditions during the quarter.
Total foreign exchange inflows into Nigeria rose by 13.26% quarter-on-quarter to $31.34 billion from $27.67 billion in the fourth quarter of 2025.
At the same time, FX outflows declined by 11.78% to $11.01 billion, resulting in a net FX inflow of $20.33 billion, compared with $15.19 billion in the preceding quarter.
Autonomous sources, representing inflows outside the CBN and banking system, contributed $21.15 billion, up 23.90% quarter-on-quarter.
Consequently, net inflows from autonomous sources reached $17.53 billion, more than six times the $2.80 billion recorded through the banking system and CBN combined.
Nigeria’s external reserves also strengthened during the period, rising to $48.35 billion at the end of March 2026 from $45.75 billion at the end of December 2025.
The reserve level provided cover for about 8.84 months of imports, substantially above the three-month international benchmark cited by the CBN.
Foreign liabilities increase
Despite the stronger inflows, the CBN data showed that Nigeria’s international financial liabilities continued to expand.
Total international financial liabilities increased to $226.58 billion from $220.82 billion, with portfolio investment liabilities recording the fastest growth.
Portfolio investment liabilities rose by 14.08% to $58.01 billion, compared with $90.38 billion in direct investment liabilities and $78.03 billion in other investment liabilities.
Nigeria’s total international financial assets stood at $127.34 billion, leaving the country with a net international investment liability position of $99.24 billion.
The stronger appetite for Nigerian securities was also reflected in activity in the fixed-income market during the quarter.
CBN Open Market Operations (OMO) bills attracted subscriptions worth N35.62 trillion, compared with N9 trillion offered, while Nigerian Treasury Bills received N24.93 trillion in bids against N7.97 trillion offered.
The data suggests strong investor demand for short-duration naira-denominated securities during the period.
The development came alongside broader improvements in Nigeria’s external accounts. Diaspora remittances stood at $5.30 billion in Q1 2026, although this represented a 7.50% decline from the previous quarter.
The CBN data also showed that Nigeria’s secondary-income surplus fell to $5.57 billion from $6.21 billion in Q4 2025.
The latest figures underline the growing importance of foreign portfolio investors to Nigeria’s external financing, while also highlighting the distinction between short-term portfolio flows and longer-term direct investment.
Separately, National Bureau of Statistics data showed that total capital importation into Nigeria reached $10.37 billion in Q1 2026, an 83.8% year-on-year increase, with portfolio investment accounting for the overwhelming share.
