Nigeria has witnessed a notable uptick in capital inflows, marking a substantial 66.27% surge compared to figures from the third quarter of 2023.
According to the recent report by the National Bureau of Statistics (NBS), capital importation rose from $654.65 million in Q3 2023 to $1.09 billion in the final quarter of the year. This surge signals a robust recovery and reflects positively on the economic strategies implemented by President Bola Tinubu’s administration to enhance the nation’s investment appeal.
The rejuvenation in capital importation underscores the effectiveness of governmental policies and highlights a significant year-on-year growth. Comparatively, the Q4 2023 figures slightly surpassed the $1.06 billion milestone achieved in the same period in 2022, presenting a modest year-on-year improvement of 2.62%.
This turnaround symbolises the resilience of Nigeria’s economic landscape, with the current upswing in capital inflows indicating investor confidence in the country’s market potential and the administrative direction under President Tinubu.
In a detailed breakdown of Nigeria’s capital importation for Q4 2023, the “Other Investment” category emerged as dominant, capturing 54.64% ($594.74 million) of the total capital inflows. Portfolio Investment accounted for 28.46% ($309.76 million), while Foreign Direct Investment (FDI) contributed 16.90% ($183.97 million).
Sector-wise, the production/manufacturing sector led with $450.11 million, making up 41.35% of the quarter’s total capital inflow. The banking sector followed with $283.30 million (26.03%), and the financing sector also made a notable entry at $135.59 million (12.46%) of the total capital imported during the period under review.
During the observed period, the bulk of Nigeria’s capital importation was significantly influenced by investments from the United Kingdom, contributing $267.24 million (24.55% of total inflows). Mauritius followed closely, channeling $226.18 million (20.78%), while the Netherlands made a substantial impact with $149.93 million (13.77%).
In the fourth quarter of 2023, Lagos State solidified its position as Nigeria’s premier investment hub, attracting $771.68 million in capital importation, accounting for 65.38% of the nation’s total inflows. Abuja (FCT) followed with $370.80 million (34.07%), while Rivers State featured with $6.00 million (0.55%).
Stanbic IBTC Bank Plc emerged as the foremost recipient of capital importation into Nigeria, amassing $499.45 million (45.88% of total inflows). Citibank Nigeria Limited secured the second position with $229.06 million (21.04%), and Rand Merchant Bank Plc garnered $85.85 million (7.89%) of Nigeria’s total capital importation in the final quarter of the year.
