The National Bureau of Statistics (NBS) has reported a substantial increase in Nigeria’s capital importation, revealing a surge of 210% in the first quarter of 2024 compared to the same period last year.
According to the latest data released by the NBS on Monday, total capital importation into the country reached $3,376.01 million in Q1 2024, marking a significant rise from $1,132.65 million recorded in Q1 2023, indicating an increase of 198.06%.
The report also highlighted a 210.16% increase from the $1,088.48 million recorded in Q4 2023.
The surge was predominantly driven by Portfolio Investment, which accounted for $2,075.59 million or 61.48% of the total capital importation. Other investments followed with $1,181.25 million, constituting 34.99%, while Foreign Direct Investment (FDI) recorded the least at $119.18 million, representing 3.53% of the total.
In its analysis, the NBS attributed the significant increase in capital importation to favorable investment conditions and opportunities in the Nigerian market during the first quarter of the year.
The report underscores Nigeria’s growing appeal to foreign investors across various sectors, reflecting robust economic activities and potential for returns on investment.
The NBS report further revealed that the surge in capital importation signals positive momentum for economic growth and development in Nigeria, amidst ongoing efforts to attract more foreign investments.
The NBS statement read in part, “The banking sector recorded the highest inflow with $2,067.44m, representing 61.24% of total capital imported in Q1 2024, followed by the Trading sector, valued at $494.93M (14.66%), and Production/Manufacturing sector with $191.92M (5.68%).
“Stanbic IBTC Bank Plc received the highest capital importation into Nigeria in Q1 2024 with $1,257.38m (37.24%), followed by Citibank Nigeria Limited with $547.71m (16.22%) and Rand Merchant Bank Plc with $528.73 (15.66%).”
Also, the report noted that “out of the three states that recorded capital importation during the quarter, Lagos State remained the top destination with $2,782.41m, accounting for 82.42% of the total capital imported. Abuja (FCT) followed with $593.58m (17.58%), and Ekiti State with $0.01m.”
– Top importation sources –
Nigeria’s capital importation during the reference period originated largely from the United Kingdom with $1,805.83m, showing 53.49% of the total capital imported.
This was followed by Republic of South Africa with $582.34m (17.25%) and the Cayman Islands with $186.21m (5.52%).