By Aduragbemi Omiyale
In the first quarter of 2024, Nigeria attracted $3.367 billion in capital inflow, 198.06 per cent higher than the $1.133 billion recorded in the same period of last year.
This information was revealed by the National Bureau of Statistics (NBS) in its Nigeria Capital Importation Report released on Monday afternoon.
The agency further stated that the amount recorded by the nation in the period under review was higher by 210.16 per cent than the $1.089 billion posted in the last quarter of 2023.
Business Post observed that the improvement was largely driven by a rise in Portfolio Investment, which accounted for 61.48 per cent at $2.076 billion as a result of inflows of foreign exchange (FX) by offshore investors chasing government securities selling at higher interest rates after the Central Bank of Nigeria (CBN), through its Monetary Policy Committee (MPC), raised benchmark interest rates.
The rates were hiked by the central bank to attract hot money to defend the Naira in the currency market, with treasury bills selling at nearly 30 per cent.
The data released by the NBS showed that Other Investments accounted for 34.99 per cent of the inflows at $1.181 billion in the first three months of this year, while Foreign Direct Investment (FDI) recorded the least contribution of 3.53 per cent at $119.18 million.
The stats office said capital importation during the reference period originated largely from the United Kingdom with $1.806 billion, accounting for 53.49 per cent. It was trailed by South Africa with 17.25 per cent at $582.34 million, and the Cayman Islands at 5.52 per cent with $186.21 million.
It disclosed that the banking sector recorded the highest inflow of $2.067 billion at 61.24 per cent of total capital imported in Q1 2024, followed by the trading sector with 14.66 per cent at $494.93 million, and the production/manufacturing sector with 5.68 per cent at $191.92 million.
As usual, Lagos was the main destination at 82.42 per cent with $2.782 billion, followed by Abuja at 17.58 per cent with $593.58 million, and Ekiti State with $0.01 million.
These funds came in through Stanbic IBTC Bank, Citibank, and Rand Merchant Bank, contributing 37.24 per cent with $1.257 billion, 16.22 per cent with $547.71 million, and 15.66 per cent with $528.73 million, respectively.