Nigeria recorded a total of $2.60 billion in capital importation during the second quarter (Q2) of 2024, according to the latest report from the National Bureau of Statistics (NBS). The inflow represents a decrease of $771.51 million, or 22.85%, compared to the $3.37 billion recorded in the first quarter (Q1) of the year.
Despite the quarter-on-quarter decline, the NBS reported a significant year-on-year increase in foreign investment, with Q2 2024 inflows showing a 152.8% rise compared to the $1.30 billion recorded in the same quarter of 2023. This surge reflects a growing interest in Nigeria from international investors, especially in sectors such as banking, manufacturing, and trade.
“Total capital importation into Nigeria in Q2 2024 stood at $2.60 billion, higher than the $1.03 billion recorded in Q2 2023, indicating an increase of 152.81%,” the NBS stated in its report, released on Tuesday.
Foreign portfolio investments (FPI) dominated the inflows, accounting for $1.4 billion, or 53.93% of total investments. Other investments followed closely at $1.16 billion, making up 44.92%. However, foreign direct investment (FDI) lagged significantly, generating only $29.83 million, or 1.15% of the total capital imported during the period.
The report also revealed that the banking sector attracted the highest capital inflows, with $1.12 billion, representing 43.15% of the total. This was followed by the production/manufacturing sector, which recorded $624.71 million (23.99%), and the trading sector with $569.22 million (21.86%).
In terms of country sources, the United Kingdom led the charge, contributing $1.12 billion, or 43.01% of the total capital importation. The Netherlands followed with $577.82 million (22.19%), while the Republic of South Africa contributed $255.98 million (9.83%).
On a state-by-state analysis, Lagos remained the top destination for capital inflows, receiving $1.36 billion, which accounted for 52.52% of the total importation. Abuja followed closely with $1.23 billion, while Ekiti recorded a minimal inflow of $0.0003 million.
The report also highlighted that Citibank facilitated the highest capital importation into Nigeria, handling $818.46 million, or 31.43% of the total. Standard Chartered Bank and Rand Merchant Bank followed, recording $654.79 million (25.14%) and $488.59 million (18.76%), respectively.
The NBS report underscores both the opportunities and challenges in Nigeria’s investment landscape as the country continues to navigate the complexities of global economic conditions.
