Banking sector attracts $13.53 billion foreign inflows in 2025 amid recapitalisation drive

Foreign capital inflows into Nigeria’s banking sector rose to $13.53 billion in 2025, representing a 93.25% year-on-year increase from $7.00 billion recorded in 2024.

This surge occurred as banks intensified capital raising ahead of the Central Bank of Nigeria’s recapitalisation deadline.

Latest data from the capital importation report by the National Bureau of Statistics (NBS) shows the banking sector remained the largest destination for foreign capital, accounting for 58.26% of total inflows in 2025, compared to 56.81% in 2024, highlighting its dominance in Nigeria’s capital importation landscape.

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What the data shows

A breakdown of the data shows sustained growth across all quarters, reflecting consistent foreign investor participation.

• In Q1 2025, banking inflows stood at $3.13 billion, up from $2.07 billion in Q1 2024. The pace accelerated in Q2, where inflows climbed to $3.41 billion, compared to $1.12 billion a year earlier.
• In Q3 2025, inflows reached $3.14 billion, significantly higher than $579.48 million recorded in Q3 2024, while Q4 2025 saw inflows rise to $3.85 billion, up from $3.23 billion in the corresponding period of 2024.

The pattern suggests that capital raising was not concentrated in a single window but sustained throughout the year, aligning with banks’ phased recapitalisation strategies.

**Banking accounts for bulk of inflows **

The sector maintained a commanding share of total capital importation across all quarters in 2025.

• It accounted for 55.44% of total inflows in Q1, surged to 66.56% in Q2, moderated to 52.25% in Q3, and rebounded to 59.75% in Q4.
• This compares with 2024, where banking’s share ranged from 43.15% in Q2 to 63.46% in Q4, indicating that 2025 saw a more consistent concentration of inflows into the sector.
• Nigeria’s total capital importation increased to $23.22 billion in 2025, up from $12.32 billion in 2024, reflecting an 88.45% year-on-year growth.

Quarterly inflows in 2025 were also stronger across the board, rising from $5.64 billion in Q1 to $6.44 billion in Q4, signalling improving investor confidence and stronger liquidity conditions.

The banking sector alone contributed over $6.53 billion to the total increase of $10.90 billion, reinforcing its central role in driving the overall growth.

**What you should know **

The data shows that Nigeria’s recapitalisation exercise is likely a major driver of foreign capital inflows, reshaping the structure of capital importation.

• With new minimum capital thresholds reaching up to N500 billion for international banks, lenders have relied heavily on foreign capital through equity raises, private placements, and strategic investments.
• The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, earlier disclosed that 32 banks in Nigeria have already met the revised minimum capital requirements under the ongoing recapitalisation programme, marking a major milestone in efforts to strengthen the financial system.
• The CBN also disclosed that Nigerian banks mobilised a total of N4.61 trillion in fresh capital under its ongoing recapitalisation programme, reflecting strong investor appetite and growing foreign participation in the sector.
• According to the apex bank, the recapitalisation exercise is already yielding measurable outcomes, particularly in terms of improved investor confidence and regional expansion by Nigerian banks.

As the March 31, 2026 deadline approaches, the sustained inflow trend points to significant progress by banks in meeting regulatory requirements, although final outcomes may still trigger consolidation through mergers or licence adjustments.

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