CBN: Portfolio inflows hit $7.09bn in Q2 2026, reserves climb to $51.4bn
Nigeria's portfolio investment inflows surged 17.6% quarter-on-quarter to $7.09 billion in Q2 2026, up from $6.03 billion in Q1, the CBN reported Monday. The $1.06 billion increase came from higher foreign appetite for long-term government debt securities, making portfolio inflows the dominant capital flow at 65% of net new liabilities.
Direct investment liabilities grew modestly to $1.15 billion (up 11.7%), while other investment liabilities more than doubled to $2.75 billion on increased government loan drawdowns. Total net financial liabilities incurred rose to $10.84 billion from $8.36 billion.
Despite the portfolio surge, aggregate FX inflows dropped 4.24% to $30.03 billion. Autonomous inflows rose 3.6% to $21.91 billion, but CBN receipts fell sharply by 20.5% to $8.12 billion. The financial account flipped to net lending of $1.74 billion from net borrowing of $2.03 billion in Q1.
External reserves strengthened to $51.39 billion at end-June from $48.35 billion in March. The NFEM rate appreciated to ₦1,365.95/$ from ₦1,384.48/$. Nigeria's net international investment liability narrowed to $92.94 billion from $94.68 billion, though total financial liabilities expanded to $238.66 billion.
The CBN cautions that portfolio inflows—largely government debt purchases—don't equal long-term capital formation. Direct investment, which drives job creation and technology transfer, remains a fraction of portfolio flows. For investors, the yield on Nigerian sovereign debt continues attracting hot money, but the structural shift toward productive capital remains slow.