Foreign capital inflows into Nigeria’s banking sector hit $7 billion in 2024, the highest since 2019, according to new data from the National Bureau of Statistics (NBS).
The inflows accounted for 56.8 per cent of Nigeria’s total capital importation for the year, marking a 740.3 per cent surge from the $832.6 million recorded in 2023. The performance signals a strong rebound from years of subdued investment in the sector.
However, 90 per cent of the inflows are classified as hot money—short-term speculative funds seeking high yields in Nigeria’s high-interest-rate environment, rather than long-term FDI.
Quarterly data shows banking attracted $3.23 billion in Q4 2024 and $3.13 billion in Q1 2025, maintaining above-$3 billion performance for two consecutive quarters.
Analysts warned that the dominance of short-term instruments like OMO and Treasury Bills highlights structural vulnerabilities, despite the headline investment figures.
