NBS says Capital importation rose by 210% in Q1 2024

 

 

The National Bureau of Statistics (NBS) has said Nigeria’s capital importation grew by 210.16 percent in the first quarter (Q1) of 2024.

According to TheCable, the total capital imported stood at $3.38 billion in Q1 2024, up from the $1.09 billion recorded in Q4 2023.

Capital importation is the inflow of funds from abroad to fuel investment, trade, and manufacturing within a country.

On a year-on-year basis, the NBS data shows that foreign investment into the country grew by 198.06 percent compared to $1.13 billion in Q1 2023.

“In Q1 2024, total capital importation into Nigeria stood at US$3,376.01 million, higher than US$1,132.65 million recorded in Q1 2023, indicating an increase of 198.06%,” NBS said.

“In comparison to the preceding quarter, capital importation rose by 210.16% from US$1,088.48 million in Q4 2023.”

The bureau said foreign portfolio investments (FPI) ranked top with $2.08 billion, accounting for 61.48 percent, followed by other investments with $1.18 billion, accounting for 34.99 percent.

Foreign direct investment (FDI) recorded the least, with $119.18 million (3.53 percent) of total capital importation in Q1 2024.

The sector that received the highest capital investment was banking, followed by trading and production/manufacturing sector.

“The banking sector recorded the highest inflow with $2.07 billion, representing 61.24 percent of total capital imported in Q1 2024,” the NBS said.

The trading sector recorded $494.93 million (14.66 percent), while production and manufacturing sector received $191.92 million (5.68 percent).

“Capital importation during the reference period originated largely from the United Kingdom with US$1,805.83 million, showing 53.49% of the total capital imported,” the bureau said.

“This was followed by Republic of South Africa with US$582.34 million (17.25%) and the Cayman Islands with US$186.21 million (5.52%).”

According to NBS, only Lagos, Abuja and Ekiti states attracted capital importation.

Lagos State remained the top destination with $2.78 billion, accounting for 82.42 percent of the total imported capital, Abuja (FCT) followed with $593.58 million (17.58 percent), and Ekiti State with $12,750 million.

NBS said Stanbic IBTC Bank Plc received the highest capital importation by banks, recording $1.25 billion (37.24 percent) during the reviewed period, Citibank Nigeria Limited got $547.71 million (16.22 percent) and Rand Merchant Bank Plc received $528.73 (15.66 percent).