UK Contributed $267.24m as Capital Importation Increased by 2.62% to $1.09bn in Q4 2023

In the fourth quarter of 2023, Nigeria experienced a rise in total capital importation, reaching $1.09 billion, reflecting a growth of 2.62 per cent over $1.06 billion recorded in the same period of 2022.

Also, the growth is a significant uptick of 66.27 per cent from the preceding quarter, where capital importation stood at $654.65 million in Q3 2023.

According to recent data released by the National Bureau of Statistics (NBS), Other Investments emerged as the top contributor, constituting 54.64 per cent, $594.74 million of total capital importation in Q4 2023. Portfolio Investment accounted for 28.46 per cent, $309.76 million, followed by Foreign Direct Investment (FDI) with 16.90 per cent, $183.97 million.

The production/manufacturing sector attracted the highest inflow of capital, with $450.11 million, representing 41.35 per cent of total capital imported in Q4 2023.

This was followed by the banking sector, which received $283.30 million, 26.03 per cent, and financing with $135.59 million, 12.46 per cent.

Capital importation during the period originated predominantly from the United Kingdom, contributing $267.24 million and accounting for a 24.55 per cent share.

Mauritius followed closely with $226.18 million, 20.78 per cent, while the Netherlands recorded $149.93 million, 13.77 per cent.

In terms of destination, Lagos state retained its position as the top recipient of capital importation in Q4 2023, attracting $771.68 million, which constituted 65.38 per cent of the total capital imported. Abuja (FCT) followed with $370.80 million, 34.07 per cent, and Rivers state received $6.00 million 0.55 per cent.

Among financial institutions, Stanbic IBTC Bank Plc emerged as the recipient of the highest capital importation into Nigeria during the quarter, receiving $499.45 million 45.88 per cent. Citibank Nigeria Limited followed with $229.06 million 21.04 per cent, and Rand Merchant Bank Plc recorded $85.85 million 7.89 per cent.

Experts believe the increase in capital importation, particularly in the production/manufacturing sector, indicates growing investor confidence and interest in Nigeria’s economic prospects.

“With the influx of capital from various sources and sectors, the country aims to foster sustainable economic growth and development in the coming quarters, “said a market watcher.