Despite 11.7% FDI Growth, Hot Money Dominates Q2 Capital Inflows

Nigeria recorded an 11.7 per cent increase in foreign direct investment (FDI) in the second quarter of 2026, but short-term portfolio flows continued to dominate foreign capital entering the economy, accounting for more than six times the amount committed as direct investment.
Latest Balance of Payments data from the Central Bank of Nigeria (CBN) showed that FDI inflows rose to $1.15 billion in the second quarter from $1.03 billion in the first three months of the year.
Foreign portfolio investment, often described as hot money because of the relative ease with which investors can move funds in and out of financial assets, climbed faster in absolute terms, rising by $1.06 billion to $...