On the outskirts of Abuja, a motorbike rider stops to charge his phone during a blackout. In the same area, point‑of‑sale (POS) machines stall for the same reason.

It’s a snapshot of how unreliable electricity shapes daily life…and drains capital from Nigeria’s economy.

The World Bank puts estimated loss from poor power supply at $29 billion each year.

But power is not the only challenge.

Over the weekend, an attack in Jos left dozens feared dead, according local reports, highlighting how insecurity continues to weigh on economic confidence in parts of the country.

These realities help explain the structure of capital now flowing back into Nigeria.

Inflows nearly doubled in 2025, but largely through portfolio investments chasing yield, while long‑term commitments remain subdued.

Today’s signals track both sides of this story as we see reforms aimed at restoring confidence, and the structural gaps that continue to shaping how capital gets deployed.

Nigeria saw capital inflows nearly double in 2025, rising to $23.22 billion from $12.32 billion the year before, as economic reforms, including foreign exchange liberalisation, helped restore investor confidence.

Most of that capital, according to official data, came through portfolio investment. Foreign investors deployed $19.74 billion into local markets, accounting for about 85 percent of the total, as they chased high bond yields.

Money‑market instruments attracted $13.83 billion, while bond inflows jumped almost fivefold to $4.89 billion. Equity flows rose too, though more modestly.

On another hand, foreign direct investment barely moved, inching up to $923 million in 2025 from $675 million in 2025. That highlights continued caution around long‑term commitments.

The United Kingdom was the largest source of inflows, accounting for 58 percent, with banks receiving the biggest share.

As reforms take hold, the data suggest investors are returning to Nigeria, but mainly for short-term yield rather than long‑term investment.

A visual note from Nigeria’s economy

Nigeria’s central bank has lifted restrictions that forced oil companies to keep part of their export earnings at home. The change restores flexibility in cash management and signals further liberalisation of the foreign exchange regime.

Regulators are fast‑tracking approvals to bring dormant oil wells back online, cutting processing times from weeks to hours as authorities seek to boost output amid strengthening global prices.

Fintech firm Moniepoint has entered Kenya by acquiring a majority stake in Sumac Microfinance Bank, securing a deposit‑taking licence. At home, it acquired Orda Africa, integrating restaurant management and payments into its platform. The strategy reflects a broader shift from payments to full‑stack business infrastructure.

Legend Internet plans to merge with Spectranet, combining fibre and wireless infrastructure to expand coverage and efficiency. The deal, expected to be completed in Q2, 2026, paves the way for early consolidation in Nigeria’s growing broadband market.

Nigeria is becoming more investable as policy reforms reopen access to capital.

But without parallel progress in infrastructure (especially power) and security, the economy cannot fully absorb or sustain long-term investment.

For now, the market is defined by opportunity in financial flows, while economic conditions on the ground remain constrained by structural challenges.

That gap, between capital markets and the real economy, is where investors will continue to watch for the next phase of both risk and opportunity.

234Digest tracks capital flows, infrastructure and policy signals shaping Nigeria’s evolving economic story.

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