Nigeria’s Capital Importation Sees Significant Increase of 210% to $3.37m in Q1 2024.

Olufemi Adeyemi 

A recent report published by the National Bureau of Statistics (NBS) revealed a significant increase in the total capital inflow into Nigeria during the first quarter of 2024. Specifically, capital importation witnessed a substantial rise of 210.16 percent, amounting to $3,376 million.

As per the report, there has been an increase from $1,088 million recorded in the fourth quarter of 2023.

The increase has surpassed the $1,132 million recorded in the first quarter of 2023, reflecting a substantial growth of 198 percent.

A more detailed analysis of the report revealed that Portfolio Investment was the dominant category, accounting for a substantial 61% or US$2,075 million. Other investments followed, contributing approximately 35% or US$1,181 million.

Foreign Direct Investment accounted for the lowest amount of total capital inflows in Q1 2024, with a recorded value of US$119 million, representing 3.53% of the total capital imported during that period.

During the specified time frame, the banking industry saw the most significant influx of capital, accounting for 61.24% of the total capital imported in Q1 2024. This amounted to USD 2,067 million. The trading sector followed with an inflow of approximately USD 494 million, representing 14.66% of the total, while the production and manufacturing sector attracted approximately USD 192 million, accounting for 5.66% of the total capital imported.

During the reference period, the majority of capital importation originated from the United Kingdom, accounting for approximately 53.49% or $1,806 million of the total capital imported.

Subsequently, the Republic of South Africa contributed $582 million (17.25 percent), followed by the Cayman Islands with a contribution of US$186 million (5.52 percent).

Among the three states that experienced capital inflow during the quarter, Lagos State maintained its position as the primary destination, attracting $2,782 million, which represented 82% of the total capital imported.

The city of Abuja secured the second position with a notable investment of $593 million, accounting for 17.58 percent of the total investments. Ekiti state, on the other hand, received a minimal investment of $0.01 million.

In the first quarter of 2024, Stanbic IBTC Bank Plc was the recipient of the highest amount of capital imported into Nigeria, with an impressive $1,257 million, representing 37.24% of the total capital Inflow. Citibank Nigeria Limited followed closely behind, securing approximately $548 million (16.22%), while Rand Merchant Bank Plc secured approximately $529 million (15.66%).

July 01, 2024