The National Bureau of Statistics (NBS) reported that from 2022 and 2023, capital imports into the Nigerian economy fell by almost 27%. The statistics office’s most recent capital importation data states that $3.91 billion was brought into Nigeria in 2023.
According to investment banking business Cowry Asset Limited, the figure is the lowest inflow since 2007 and represents a 26.7% year-over-year fall from $5.33 billion in 2022.
When compared to the overall inflow of $5.99 billion in 2010 and the total inflows of $23.6 billion, $20.8 billion, and $23.7 billion in 2013, 2014, and 2019, respectively, analysts view the figure as a significant fall.
The entire amount of capital imported into Nigeria in Q4 2023 was US$1,088.48 million, little more than US$1,060.73 million reported in Q4 2022, indicating an increase of 2.62%. In comparison to the preceding quarter, capital importation rose by 66.27% from US$654.65 million in Q3 2023.
Other Investment ranked top accounting for 54.64% or US$594.74 million of total capital importation in Q4 2023, followed by Portfolio Investment with 28.46% or US$309.76 million and Foreign Direct Investment (FDI) with 16.90% (US$183.97 million).
The production/manufacturing sector recorded the highest inflow with US$450.11 million, representing 41.35% of total capital imported in Q4 2023, followed by the banking sector, valued at US$283.30 million (26.03%), and financing with US$135.59 million (12.46%).
Capital Importation during the reference period originated largely from the United Kingdom with US$267.24 million and recorded 24.55% share. This was followed by Mauritius with US$226.18 million (20.78%) and the Netherlands with US$149.93 million (13.77%).
Lagos State remained the top destination in Q4 2023 with US$771.68 million, accounting for 65.38% of total capital importation, followed by Abuja (FCT) with US$370.80 million (34.07%) and Rivers state with US$6.00 million (0.55%).
Stanbic IBTC Bank Plc received the highest capital importation into Nigeria in Q4 2023 with US$499.45 million (45.88%), followed by Citibank Nigeria Limited with US$229.06 million (21.04%) and Rand Merchant Bank Plc with US$85.85 (7.89%).
