Foreign portfolio inflows into Nigeria rise 17.6% to $7.09bn in Q2
- CBN data shows portfolio inflows hit $7.09bn in Q2 2026, up from $6.03bn in Q1.
- Foreign investors put more money into long-term government debt securities, the report said.
- Direct investment lagged at $1.15bn, about six times smaller than portfolio inflows.
Foreign investors bought more Nigerian securities in the second quarter of 2026, with portfolio inflows rising 17.6 per cent to $7.09 billion from $6.03 billion in the first quarter.
The Central Bank of Nigeria (CBN) disclosed this in its Q2 2026 report, attributing the $1.06 billion increase to stronger appetite for long-term government debt securities.
Portfolio investment means foreigners buying assets such as government bonds, treasury bills and shares. In plain terms, more foreign money came in to hold Nigerian debt rather than to build factories or businesses.
Why it matters to ordinary Nigerians
Stronger inflows can support the naira and help the government fund its budget. The CBN said the average exchange rate in the Nigeria Foreign Exchange Market strengthened to ₦1,365.95 per dollar in Q2, from ₦1,384.48 in Q1.
External reserves also rose to $51.39 billion at the end of June, up from $48.35 billion at the end of March.
But the CBN's figures show the money is mostly short-term in nature. Portfolio inflows were about six times the size of direct investment liabilities, which came to $1.15 billion, up from $1.03 billion, driven by reinvested earnings.
Direct investment is the kind that builds plants, creates jobs and stays longer. Analysts often warn that portfolio money can leave quickly if returns change.
Other investment liabilities rose sharply to $2.75 billion from $1.36 billion, reflecting more loan drawdowns by government and other sectors, plus higher currency and deposit liabilities of banks.
Overall, net financial liabilities incurred rose to $10.84 billion from $8.36 billion. Portfolio inflows made up about 65 per cent of that, down from roughly 72 per cent in Q1 as other liabilities grew faster.
The rise came even as total foreign exchange inflows fell 4.24 per cent to $30.03 billion. Inflows through the CBN dropped 20.47 per cent to $8.12 billion, while autonomous inflows rose 3.59 per cent to $21.91 billion.
On the asset side, Nigeria's financial assets rose. Net acquisition of financial assets rose to $12.58 billion from $6.33 billion, mainly as residents held more foreign currency and deposits.
That helped the financial account record net lending of $1.74 billion, about 1.96 per cent of GDP, reversing net borrowing of $2.03 billion in Q1.
Punch reported that external debt rose to $54.52 billion at the end of June from $51.90 billion in March, partly due to a $1.5 billion Total Return Swap with First Abu Dhabi Bank and $900 million in multilateral loans.
The CBN's balance-of-payments figures are separate from the National Bureau of Statistics' capital importation data, so they should not be read as total capital coming into Nigeria.
