Nigeria’s capital importation declined sharply by 62 per cent on a month on month basis to $1.13 billion in August 2025, down from $2.98 billion recorded in July of the same year.

Despite the overall drop in capital inflows, Foreign Direct Investment rose significantly during the period, increasing by 140 per cent month on month to $120 million in August 2025, compared with $50 million in July.

The Central Bank of Nigeria disclosed this in its August Monthly Economic Report, which highlighted that the increase in Foreign Direct Investment was largely driven by higher inflows of equity capital.

The apex bank stated: “Foreign Direct Investment increased, as relative stability in the economy continued to bolster investor confidence. However, overall capital inflow moderated, on account of moderation in foreign portfolio investment.

“Foreign direct investment increased by 140.00 per cent to $0.12 billion from $0.05 billion in July, due to increased inflow of equity.”

The report noted that portfolio investment and other forms of investment declined during the period under review.

It stated: “However, portfolio investment and ‘Other investment’, mainly loans, declined to $0.92 billion and $0.09 billion, respectively, from $2.43 billion and $0.50 billion.

“Consequently, overall capital importation decreased to $1.13 billion, from $2.98 billion in the preceding month.”

The CBN further provided a breakdown of capital importation by category, noting: “In terms of share, portfolio investment constituted 81.42 per cent, while direct investment and ‘Other investment’ accounted for 10.62 and 7.96 per cent, respectively.”

Analysis of capital inflows by sector showed that financial institutions attracted the largest share of investments during the period.

According to the report, “Analysis of capital importation by nature of business showed the banking sector as the highest recipient, accounting for 68.15 per cent, followed by financing (22.18 percent), production/manufacturing (3.7 percent), and trading (2.97 percent). Other businesses accounted for the balance.”

On capital outflows, the Central Bank said there was a moderation in August due largely to reduced loan repayments and capital transfers.

The report stated: “Capital outflow moderated due to lower loan repayment and capital transfers. Capital outflow fell to $0.86 billion, from $1.36 billion in the preceding month.”

It added that a detailed breakdown showed declines across major outflow components. “A disaggregation showed that loan repayment and capital transfer declined by 55.38 and 27.93 per cent to $0.29 and $0.49 billion, respectively, from the levels in the preceding month.

“However, repatriation of dividends increased to $0.08 billion from $0.02 billion in the preceding month.”