Nigeria’s capital markets demonstrated renewed vitality in the first quarter of 2025, with the National Bureau of Statistics confirming total capital importation reached US $5.64 billion, representing a 67.12 percent year-on-year increase from Q1 2024 and a 10.86 percent gain over Q4 2024 . Portfolio investments dominated this uptick, delivering US $5.20 billion, or 92.25 percent of the total inflows, while Other Investment categories contributed US $311.17 million and Foreign Direct Investment accounted for just US $126.29 million, a mere 2.24 percent of the total .
While Abuja (FCT) emerged as the leading destination with US $3.05 billion (54.11 percent) of inflows, Lagos captured US $2.56 billion (45.44 percent), signaling a shift in investor sentiment toward Nigeria’s administrative capital . Sector breakdowns showed the banking industry absorbed US $3.13 billion (55.44 percent), followed by financing at US $2.10 billion (37.18 percent), and production/manufacturing at US $129.92 million (2.30 percent) . Inflow origins were led by the United Kingdom with US $3.68 billion (65.26 percent), followed by South Africa and Mauritius with approximately US $501.29 million and US $394.51 million respectively .
This surge reflects renewed investor confidence influenced by monetary policy reforms and growing clarity on macroeconomic fundamentals. However, the composition—heavily skewed toward speculative, short-term portfolio flows—raises concerns about the sustainability of capital sources and vulnerability to global market shifts .
During August 2025, market activity accelerated across fixed income and equities. The Debt Management Office announced the issuance of August’s FGN Savings Bond targeting retail investors. The two-year tenor maturing in August 2027 offers a 14.401 percent yield, while the three-year instrument due August 2028 carries a 15.401 percent return, designed to deepen domestic participation and expand low-risk investment avenues . Concurrently, the Central Bank of Nigeria conducted its first Treasury Bills Primary Market Auction for the month on August 6, releasing ₦220 billion across standard maturities as part of its ongoing liquidity and monetary policy operations.
Equities capital raising activity maintained momentum. United Bank for Africa Plc initiated a Rights Issue of over 3.15 billion shares at ₦50 per share, under a 1-for-13 subscription framework, representing the second tranche of its ₦400 billion Equity Shelf Programme. The capital raise, closing in early September, is expected to underpin UBA’s regional expansion and capital adequacy objectives. Ellah Lakes Plc secured shareholder approval to raise ₦250 billion in fresh equity to fund a strategic acquisition, while Chams HoldCo launched a ₦7.7 billion capital injection aimed at strengthening technological infrastructure. Oando Plc is preparing for its Annual General Meeting on August 11, at which shareholders will be asked to approve raising up to ₦500 billion through various equity and convertible instruments to reinforce operational flexibility and strategic expansion. Market sources are also indicating a possible public offering by Sterling Bank, aligned with regulatory recapitalisation directives, though clarity from the Securities and Exchange Commission on fresh commercial paper issuance remains pending.
In sum, Nigeria’s capital markets continue to evolve underpinned by significant foreign portfolio inflows, proactive sovereign bond issuance, and a pipeline of structured equity offerings. While investor sentiment remains upbeat, the prevalence of short-term capital underscores the importance of deepening FDI, ensuring regulatory clarity, and guiding capital deployment toward sustainable growth. The next quarter will be pivotal in determining whether renewed momentum translates into institutional resilience and long-term economic impact.
