Capital importation into Nigeria falls 28% to $1.57bn in Q1 2023

Nigeria’s total capital importation declined  28 per cent to $1.13 billion in the first quarter (Q1) of 2023 compared to $1.57 billion reported in the first quarter of the corresponding quarter of 2022, according to the Nigerian Bureau of Statistics (NBS).

However, the NBS report showed that the country’s capital importation was 6.78 per cent higher on a quarter-on-quarter basis against the $1.06 billion reported in the fourth quarter of 2022.

During the first three months of 2023, Nigeria received the largest capital importation from portfolio investments valued at $649.28 million which accounted for 57.32 per cent  of total capital inflow in the reviewed period. Within the portfolio investments category, Nigeria received $301 million from bonds, $222 million from equities, and $125 million from money markets.

This, the report showed,  was followed by “Other Investments’ with 38.31 per cent of total inflow worth $435.76 million, while Foreign Direct Investment (FDI) stood at $47.60 million,representing 4.20 per cent of capital import.

Disaggregated by sectors, capital importation into the banking sector recorded the highest inflow of $304.56 million, representing 26.89 per cent of total capital imported in Q1 2023. This was followed by capital imported into the production sector worth $256.12 million, accounting for 22.61 per cent of total capital, and IT Services  valued at $216.06 million, representing 19.08 per cent of total capital inflow.

was, with the United Kingdom, United Arab Emirates, United States, South Africa and Singapore leading investments into the country.

Capital importation by country of origin showed that the United Kingdom emerged the highest provider of capital inflow into Nigeria In Q1 2023 with $673.64 million, accounting for 59.47 per cent of total capital inflow. This was followed by the United Arab Emirates which contributed $108.28 million (9.56%) and the United States with an investment contribution valued at $95.36 million (8.42%). Other top contributors were South Africa and Singapore which contributed $91 million and $69 million, respectively.

Regarding investment  destinations within Nigeria, Lagos state remained the top destination in Q1 2023 with $704.87 million, accounting for 62.23 per cent of total capital investment in the country. This was followed by  the Federal Capital Territory, valued at $410.27 million (36.22%). Akwa Ibom, Adamawa, and Anambra completed the top five states, receiving $5.2 million, $4.5 million, and $4.0 million, respectively.

Analysis of foreign capital inflow by sector showed that the banking sector attracted the most foreign capital during the first quarter, receiving 26 per cent of the total foreign capital valued  at $304 million. This was followed by the production sector  with 22.61 per cent valued at $256 million, while IT services recorded 19 per cent worth $216 million.

The finance sector recorded a capital inflow of $118 million, while trading received $91 million. The telecoms sector received $22.5 million, and the transport sector attracted $12.94 million. Agriculture received  $4.84 million, while shares rose $88 million.

Meanwhile, the oil and gas sectors, brewery, and electricals represented 0.07 per cent , 0.06 per cent, and 0.65 per cent of the total capital inflow, respectively.

Categorization of capital importation by banks shows that Citibank Nigeria Limited ranked top in Q1 2023 with $424.13 million, representing 37.45 per cent of inflow. This was followed by Standard Chartered Bank Nigeria Limited with $360.33 million (31.81%) and Stanbic IBTC Bank with $151.85 (13.41%).

Onome Amuge