Business a.m.
Nigeria’s economy is experiencing a surge in foreign investment, with capital importation jumping by 210 percent quarter-on-quarter to $3.38 billion in the first quarter of 2024 from $1.09 billion recorded in the fourth quarter of 2023, according to the National Bureau of Statistics (NBS).
The NBS capital importation report for the first quarter of 2024 also showed a significant increase in foreign investment into Nigeria on a yearly basis, with capital importation rising by 198 percent year-on-year.
According to the report, the value of capital importation increased from $1.13 billion in Q1’23 to $3.38 billion in Q1’24, indicating that the country’s economy is attracting more interest from global investors.
“In Q1’24, total capital importation into Nigeria stood at $3.38 billion, higher than $1.13 billion recorded in Q1’23, indicating an increase of 198.06 percent.
“In comparison to the preceding quarter, capital importation rose by 210.16 percent from $1.09 billion in Q4’23,” NBS stated.
The NBS report revealed that of the total capital importation recorded in Q1’24, portfolio investment dominated with a significant contribution of $2.08 billion, accounting for 61.5 percent of the total. Other investment followed closely with $1.18 billion or 35 percent, while foreign direct investment (FDI) lagged behind with a relatively minor contribution of $119.18 million, accounting for 3.53 percent of the total capital inflow.
The banking sector dominated the Nigerian economy in terms of capital importation in Q1’24, according to the NBS report, accounting for 61.24 percent of the total capital inflow with a total value of $2.07 billion.
The trading sector was the next largest contributor, with a total capital inflow of $494.93 million or 14.7 percent, followed by the Production/Manufacturing sector with $191.92 million or 5.68 percent.
According to the report, the United Kingdom was the dominant source of capital importation into Nigeria during Q1 ’24, accounting for 53.5 percent of the total with $1.8 billion in capital inflows. The Republic of South Africa followed closely with a contribution of $582.34 million, representing 17.25 percent of total capital importation, while the Cayman Islands contributed $186.21 million or 5.5 percent during the reviewed period.
The NBS report indicated that Lagos State remained the top destination for capital importation in Nigeria during Q1’24, accounting for a substantial 82.4 percent of the total with $2.8 billion.
Abuja (FCT) followed closely with a contribution of $593.58 million, representing 17.6 percent of the total capital inflow, while Ekiti State registered the lowest of the three states with $0.01 million during the quarter.
Stanbic IBTC Bank Plc emerged as the bank with the highest amount of capital imported into Nigeria, receiving a total of $1.26 billion, accounting for a substantial 37.24 percent of the total capital inflow. Citibank Nigeria Limited followed with a contribution of $547.71 million, representing 16.22 percent of total capital importation, while Rand Merchant Bank Plc occupied the third spot with $528.73 million, accounting for 15.7 percent of the total inflow during the quarter.
