Africa Accounts for 22.76% Of Nigeria’s Foreign Capital Inflow In Q3 2024

The National Bureau of Statistics (NBS) reports that African investors contribute 22.76% of Nigeria’s foreign capital inflow in the third quarter of 2024. This amounts to $285.11 million, underscoring Africa’s significant role in Nigeria’s capital importation.

However, the report highlights a sharp decline in Africa’s contribution compared to previous quarters. In Q2 2024, African investments totaled $506.68 million, marking a 43.73% decrease. On a year-on-year basis, the figure also drops by 16.77% from $342.55 million recorded in Q3 2023.

Mauritius remains the top contributor from Africa with $97.63 million, but this reflects a notable decline of 61.05% from $250.70 million in Q2 2024 and a 56.85% drop from $226.18 million in Q3 2023.

South Africa contributes $185.03 million, showing significant year-on-year growth of 59.02% compared to $116.37 million in Q3 2023. However, this represents a 27.73% drop from $255.98 million recorded in Q2 2024.

Ghana makes a return to Nigeria’s capital inflow report with $2.35 million, marking renewed investment interest. Morocco also records a modest contribution of $0.10 million during the quarter.

In contrast, Nigerian investors record substantial growth in capital inflow, contributing $10.84 million in Q3 2024. This represents a 261.33% year-on-year increase from $3.00 million in Q3 2023 and a 198.63% surge from $3.63 million in Q2 2024.

While Africa maintains a critical share, the report shows Europe as the largest contributor to Nigeria’s foreign capital inflow. The United Kingdom leads with $502.60 million in Q3 2024, though this marks a decline from $1.12 billion in Q2 2024. The Netherlands follows with $121.92 million, a sharp drop from $577.82 million in the previous quarter.

North America, particularly the United States, sees growth in foreign investments, contributing $163.86 million in Q3 2024, an increase from $81.58 million in Q2 2024.

Asian countries, including Saudi Arabia, China, and Singapore, also play a role. Saudi Arabia contributes $28.01 million, down 48.65% from $54.55 million in Q2 2024. China records $9.58 million, reflecting a slight 9.88% decline from $10.63 million in Q2 2024, while Singapore’s inflow drops by 58.26% to $5.63 million from $13.49 million in the previous quarter.

Nigeria’s total foreign capital inflow stands at $1.25 billion in Q3 2024, marking a significant 51.89% decline from $2.60 billion recorded in Q2 2024. Despite the drop, the figure represents a 91.35% annual increase compared to Q3 2023.

The report attributes the overall decline to reduced inflows from major African countries like Mauritius and South Africa. However, sustained contributions from Europe and North America underline their continued role as dominant investors in Nigeria. The growth in capital inflows from Nigerian investors signals increasing local confidence in the economy, indicating a possible shift in investment dynamics.