Foreign capital inflows into Nigeria’s banking sector surged to $13.53 billion in 2025, marking a 93.25 per cent year-on-year increase from the $7.00 billion recorded in 2024, as lenders intensified capital raising ahead of the recapitalisation deadline set by the Central Bank of Nigeria.
Latest figures from the Capital Importation Report released by the National Bureau of Statistics (NBS) show that the banking sector remained the largest recipient of foreign capital in 2025, accounting for 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The data underscores the sector’s dominant position in Nigeria’s capital importation landscape and highlights the significant impact of the ongoing recapitalisation programme on investor behaviour.
A breakdown of the 2025 figures shows sustained growth across all four quarters, reflecting consistent foreign investor participation rather than one-off transactions.
In Q1 2025, inflows into the banking sector stood at $3.13 billion, compared to $2.07 billion in the corresponding period of 2024. The momentum accelerated in Q2, with inflows rising sharply to $3.41 billion, up from $1.12 billion a year earlier.
By Q3 2025, inflows reached $3.14 billion, significantly higher than the $579.48 million recorded in Q3 2024. In Q4 2025, the sector attracted $3.85 billion, compared to $3.23 billion in the same quarter of 2024.
Analysts say the pattern indicates a phased and strategic capital raising approach by banks, aligning with regulatory timelines and market conditions.
The banking sector maintained a commanding share of total capital importation throughout the year, accounting for 55.44 per cent in Q1, peaking at 66.56 per cent in Q2, moderating to 52.25 per cent in Q3, and rebounding to 59.75 per cent in Q4.
In contrast, 2024 saw more volatility in banking’s share of total inflows, ranging from 43.15 per cent in Q2 to 63.46 per cent in Q4, suggesting that 2025 witnessed a more consistent concentration of foreign capital in the sector.
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Nigeria’s total capital importation climbed to $23.22 billion in 2025, up from $12.32 billion in 2024 — an 88.45 per cent year-on-year increase.
Quarterly total inflows also strengthened steadily, rising from $5.64 billion in Q1 2025 to $6.44 billion in Q4, signalling improved investor confidence and enhanced liquidity conditions.
Of the total $10.90 billion increase recorded between 2024 and 2025, the banking sector alone contributed more than $6.53 billion, reinforcing its central role in driving overall capital growth.
Market watchers attribute the surge primarily to the recapitalisation exercise initiated by the apex bank, which raised minimum capital requirements to as much as N500 billion for international commercial banks.
To meet the new thresholds, lenders have turned to foreign investors through equity offerings, private placements, and strategic partnerships.
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, recently disclosed that 32 Nigerian banks have already met the revised minimum capital requirements under the ongoing programme, describing it as a significant milestone in strengthening the financial system.
The apex bank also revealed that lenders have mobilised a total of N4.61 trillion in fresh capital so far under the recapitalisation drive, reflecting strong investor appetite and growing foreign participation.
Financial analysts say the scale and consistency of inflows demonstrate renewed global confidence in Nigeria’s banking reforms.
A Lagos-based investment strategist, Kunle Adeyemi, noted that “foreign investors are responding positively to regulatory clarity and the structured timeline provided by the CBN. The recapitalisation exercise has effectively repositioned the banking sector as the most attractive destination for foreign capital.”
Similarly, banking analyst Ifeoma Nwankwo said the surge signals more than compliance with regulation.
“This is not just about meeting capital thresholds. Investors are betting on long-term growth, regional expansion, and stronger balance sheets. Nigerian banks are increasingly seen as regional champions with improved governance and risk management structures,” she said.
However, experts also caution that the final phase of the recapitalisation programme could trigger consolidation in the industry.
“As the March 31, 2026 deadline approaches, we may see mergers, acquisitions, or licence downgrades among smaller players unable to meet the thresholds independently,” Adeyemi added.