Foreign portfolio inflows into Nigeria reached $8 billion in H1 2025, driven by economic reforms, high yields on Nigerian debt, and improved investor confidence in the Central Bank’s policies.
Abuja, Nigeria — July 13, 2025
Nigeria recorded $8 billion in foreign portfolio inflows in the first half of 2025, marking the strongest performance in over five years. Analysts credit this surge to a combination of pro-market reforms, attractive returns on Nigerian debt instruments, and renewed investor confidence driven by the Central Bank of Nigeria’s (CBN) aggressive monetary policies.
According to data from the CBN and Nigerian Exchange Group (NGX), foreign interest in Nigerian assets—particularly government bonds and equities—has rebounded sharply, injecting renewed optimism into the local economy.
📈 What’s Driving the Surge?
Several key factors have contributed to the inflow boost:
- Attractive Yields: Nigerian treasury bills and FGN bonds are offering yields as high as 18–20%, outpacing returns in developed markets.
- Reforms and Deregulation: Structural reforms, FX liberalization, and the removal of fuel subsidies have increased policy transparency.
- CBN Stability Measures: The Central Bank’s commitment to a unified exchange rate regime and tightening of monetary policy has curbed inflation and improved naira liquidity.
“Nigeria is once again on the radar of global investors,” said financial analyst Tolulope Adebayo. “High returns combined with signs of macroeconomic discipline are turning heads.”
💹 Naira and Stock Market React Positively
The Nigerian naira has strengthened against major currencies, gaining over 10% year-to-date, while the NGX All-Share Index has risen by 12.5% in the same period. Foreign investors have particularly targeted:
- Banking and fintech stocks
- Energy and infrastructure-related bonds
- Eurobonds and high-yield sovereign debt
🌍 International Sentiment Improving
Global investment firms such as BlackRock, PIMCO, and HSBC Asset Management have reportedly increased their exposure to Nigeria, citing improved foreign reserves, consistent CBN communication, and rising oil revenues.
“We’re seeing renewed confidence in frontier markets—Nigeria is leading that momentum,” said James Patel, Emerging Markets Director at HSBC.
📊 Key Economic Indicators – H1 2025
| Indicator | Value/Change |
|---|---|
| Foreign Portfolio Inflows | $8 billion |
| NGX All-Share Index | +12.5% YTD |
| Naira Performance (vs USD) | +10% Appreciation |
| Inflation Rate | 17.2% (down from 21.5%) |
| 1-Year Treasury Bill Yield | 19.8% |
🧠 Expert Outlook: More to Come?
Market experts believe that if reforms continue and inflation remains controlled, foreign portfolio inflows could exceed $13 billion by year-end. However, they caution that policy consistency, election-related stability, and external shocks like oil price volatility could affect the pace of inflows.
“Momentum is strong, but Nigeria must maintain fiscal discipline and avoid abrupt policy reversals,” noted Dr. Fatima Idris, Head of Markets at Zenith Capital.
✅ Conclusion
The $8 billion foreign portfolio inflow in H1 2025 highlights a significant turning point for Nigeria’s economic recovery. The combination of high yields, a reform-driven environment, and a more transparent monetary policy is reviving global investor confidence, strengthening the naira, and pushing the stock market upward. If sustained, this momentum could position Nigeria as a top investment destination in Africa by the end of 2025.