CBN data shows foreign holdings of Nigerian securities dominated new financial liabilities in Q1 as reserves climbed to $48.35bn…..
Foreign investors increased their exposure to Nigerian financial assets in the first quarter of 2026, with portfolio investment inflows rising by 14.4 per cent to $6.03 billion, according to the latest data from the Central Bank of Nigeria.
The figure was contained in the CBN’s Q1 2026 Economic Report, which tracks developments in Nigeria’s external accounts, financial flows, public finances and liquidity during the period.
Portfolio investment accounted for the largest share of the $7.22 billion gross incurrence of financial liabilities recorded in the quarter, highlighting the growing role of foreign investors in Nigeria’s equities, bonds and other securities.
The latest inflow represents an increase of about $760 million from the $5.27 billion recorded previously, with the CBN attributing the rise largely to increased purchases of Nigerian equities by foreign investors.
The scale of the portfolio inflows was significantly higher than direct investment during the period.
Nigeria recorded $1.03 billion in direct investment liabilities in the first quarter, representing a 7.09 per cent decline from the previous quarter. Other investment liabilities stood at $220 million.
Overall, the country’s financial account recorded a net incurrence of financial liabilities of $2.51 billion during the quarter.
The disparity between portfolio and direct investment flows means that portfolio inflows were almost six times the size of direct investment liabilities incurred during the period, underscoring the growing importance of relatively liquid financial assets in attracting foreign capital.
The surge in portfolio investment came against the backdrop of an improved external position for the Nigerian economy.
Total foreign exchange inflows rose by 13.26 per cent to $31.34 billion in the first quarter, compared with $27.67 billion in the final quarter of 2025.
At the same time, FX outflows declined by 11.78 per cent to $11.01 billion, resulting in a net foreign exchange inflow of $20.33 billion, up from $15.19 billion in the previous quarter.
Autonomous sources, which represent inflows outside the Central Bank and banking system, accounted for $21.15 billion of total FX inflows, an increase of 23.90 per cent quarter-on-quarter.
The net inflow from autonomous sources stood at $17.53 billion, more than six times the $2.80 billion recorded through the CBN and banking system combined.
Nigeria’s external reserves also strengthened during the period, reaching $48.35 billion at the end of March 2026 from $45.75 billion at the end of December 2025.
The reserve position provided import cover of about 8.84 months, well above the three-month benchmark commonly used as a measure of external reserve adequacy.
However, the stronger inflow of portfolio capital is also contributing to the expansion of Nigeria’s stock of international financial liabilities.
Total international financial liabilities increased to $226.58 billion from $220.82 billion, with portfolio investment liabilities recording the fastest growth.
Portfolio liabilities rose by 14.08 per cent to $58.01 billion. Although the figure remained below direct investment liabilities of $90.38 billion and other investment liabilities of $78.03 billion, portfolio liabilities expanded at a faster pace than the other categories.
Nigeria’s international financial assets stood at $127.34 billion, leaving the country with a net international investment position of negative $99.24 billion.
The growing appetite for Nigerian securities was also reflected in activity in the domestic fixed-income market during the quarter.
Central Bank of Nigeria Open Market Operations bills attracted subscriptions worth N35.62 trillion, compared with N9 trillion offered, while Nigerian Treasury Bills received N24.93 trillion in bids against an offer of N7.97 trillion.
The figures point to strong demand for short-term naira-denominated securities among investors and form part of the broader financial-market environment supporting portfolio inflows.
Meanwhile, Nigeria’s consolidated public debt stood at N159.27 trillion as of December 2025, equivalent to 36.94 per cent of GDP.
The Federal Government accounted for N154.92 trillion, or 97.26 per cent of the total public debt stock.
Domestic Federal Government debt stood at N80.49 trillion, with FGN bonds accounting for 79.06 per cent of the domestic debt portfolio.
External debt was $51.86 billion at the end of 2025, with multilateral loans accounting for 45.99 per cent and commercial borrowing and Eurobonds representing 35.77 per cent.
Diaspora remittances contributed another $5.30 billion to the economy during the first quarter, although the figure was 7.50 per cent lower than the previous quarter.
As portfolio investment continues to account for a growing share of new foreign liabilities, the CBN data highlights both the strength of investor demand for Nigerian assets and the changing composition of foreign capital entering the economy.
