The capital importation into Nigeria has experienced a notable decrease, plummeting by 32.90% to reach $1.03 billion.

 

Nigeria's capital importation has seen a significant downturn, with a notable decline to $1.03 billion in the second quarter of 2023, marking a substantial drop from the $1.5 billion recorded in the same period in 2022. This decrease, amounting to 32.90%, was reported by the National Bureau of Statistics (NBS). Additionally, the NBS report highlights a 9.04% decrease compared to the $1.13 billion recorded in the first quarter of 2023.

Capital importation is a term encompassing all foreign investments or monetary inflows into Nigeria's economy, including funds directed towards investments, trade, or business expansion.

The Bureau's data reveals that investment claimed the lion's share, accounting for 81.28% of total capital importation in Q2 2023, equivalent to $837.34 million. Portfolio investment followed with 10.37%, amounting to $106.85 million, and foreign direct investment with 8.35%, totaling $86.03 million.

In terms of sectors, the production sector led the inflow, capturing $605.04 million, which constitutes 58.73% of total capital imported in Q2 2023. The banking sector followed closely with $194.58 million, equivalent to 18.89%, and shares accounted for $68.63 million, or 6.66%.

The NBS data further indicates that the majority of capital importation during the reference period originated from the United States, contributing $271.92 million (26.39%). Singapore and the Republic of South Africa followed with $177.44 million (17.22%) and $136.95 million (13.29%) respectively.

Lagos State retained its position as the top destination for capital importation in Q2 2023, attracting investments totaling $778.06 million, equivalent to 75.52% of the total capital. Abuja ranked second with $194.28 million, representing 18.86% of the capital inflow.

The report also highlighted the financial institutions that played a significant role in capital importation. First Bank of Nigeria Limited emerged as the leading recipient, with capital inflow of $323.13 million (18.23%). It was followed by Citibank Nigeria Limited, which received $187.77 million (12.23%), and Rand Merchant Bank with $126.03 million (6.47%).