Foreign Portfolio Investment (FPI) into Nigeria climbed 17.6% quarter-on-quarter to $7.09 billion in the second quarter of 2026, up from $6.03 billion recorded in the first quarter.
The figures were disclosed in the latest financial account and balance of payments report released by the Central Bank of Nigeria (CBN).
The $1.06 billion capital expansion underscores renewed offshore investor interest in fixed-income instruments, primarily driven by lucrative yields on open market operations (OMO) and short-term government paper.
FPI dominated total incoming capital, accounting for 65% of net financial liabilities incurred in Q2. Portfolio inflows outpaced Foreign Direct Investment (FDI) by roughly six to one.
Other investment liabilities also increased, rising to $2.75 billion in the second quarter from $1.36 billion in the first quarter.
This influx of hot money bolstered external buffers, pushing gross foreign exchange reserves to $51.39 billion at the end of June 2026, compared to $48.35 billion in March.
However, analysts caution that the heavy reliance on short-term portfolio flows leaves foreign exchange liquidity vulnerable to global rate shifts, emphasizing the need for structural reforms to attract long-term FDI.
