{
  "id": 16749570,
  "title": "Businesses starved of capital as Nigeria flooded with 'hot money'",
  "url": "https://urgent.news/2026/10/27/businesses-starved-of-capital-as-nigeria-flooded-with-hot-money",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-27T10:57:40.000Z",
  "source": {
    "name": "Africa Business",
    "slug": "africa-business",
    "url": "https://african.business/2026/10/finance-services/businesses-starved-of-capital-as-nigeria-flooded-with-hot-money"
  },
  "original_language": "en",
  "account": "Nigeria's economy has suffered as a result of the capital influx due to the country's hot money inflow. Businesses, particularly in the real sectors, have been severely impacted by the economic reforms introduced by President Bola Tinubu. Akin Adejumo, a poultry farmer, expressed his struggle with increased transportation costs due to fuel price hikes, devalued currency, and collapsing sales due to higher feed prices. He expressed his need for more working capital but lamented that the high bank interest rates make it nearly impossible for small businesses to access funds. The Central Bank of Nigeria raised the benchmark Monetary Policy Rate (MPR) to record highs, attracting hot money investors looking for high yields. The inflow of funds from portfolio funds into the country reached $21.4 billion in 2025, with over 95% of the total funds coming as portfolio investments. Manufacturing and agriculture sectors only received 1.3% of the total inflow, with foreign direct investment accounting for only $135.08 million in the first quarter of 2026. Nigerian banks have never been richer, posting record profits, and are full of cash. However, businesses with real orders and sound plans often cannot get loans due to high interest rates, which reach 30% to 46%. The Central Bank's forbearance rule, which enabled banks to skip some prudential rules, has ended, resulting in a rise in non-performing loans and caution from banks. The study by Africa-focused Open Capital Advisors concluded that a lack of access to finance fosters economic stagnation, delays development, and deepens poverty.",
  "summary": "Portfolio funds known as hot money are flowing into Nigerian bonds and Treasuries, but little reaches businesses desperate for capital.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}