Nigeria’s capital importation in charts
NIGERIA’S capital importation experienced another dip in Q2 2022 as the total value decreased by 2.4 percent from the $1.6 billion recorded in the first quarter of the year to $1.5 billion. However, year-on-year, capital importation increased by 75.3 percent. This was disclosed by the National Bureau of Statistics (NBS) in its Q2 2022 capital importation report.
The investment types that make up capital importation, Foreign Direct Investment (FDI) accounted for only 9.6 percent of the total capital importation for Q2 2022, while Portfolio Investment contributed 49.3 percent and other investment contributed 41.1 percent. Capital importation from FDI increased quarter-onquarter (Q-O-Q) by 5.0 percent, portfolio investment increased by 20.9 percent and other investments increased by 37.0 percent.
Nigeria’s sectoral breakdown for Q2 2022 displays the banking sector with the highest capital importation inflow of $646.4 million, closely followed by the production sector with $233.9 million. For the bottom half, the consultancy and Information Technology (IT) sectors were the bottom fielder with the lowest inflow in Q2 2022 which was in similar strands as Q1 2022. Five out of the twenty-one sectors listed received no capital inflow in Q2 (Brewing, Consultancy, Fishing, Hotels and Tanning).
United Kingdom generated the highest source of capital importation for Nigeria with a value of $781.1 million, representing 50.9 percent of the total capital import recorded for the quarter in review. Singapore and South Africa ranked as second and third sources of capital imported into Nigeria in Q2 with values of $138.6 million and $122.3 million respectively. The total value for the quarter amounted to $1.54 billion.
Data on Capital Importation by destination to Nigeria revealed Lagos and Abuja attracted the largest share of capital inflow, receiving $1.05 billion and $453.95 million respectively. Compared to Q1 2022, the total inflow Lagos received in Q2 declined by 5.8 percent from $1.1 billion. Abuja however recorded 1.6 percent increase in its total inflow from $446.8 million.
Citibank Nigeria Limited ranked highest in capital importation value with $450.9 million, largely followed by Standard Chartered Bank Nigeria Limited and Stanbic IBTC Bank Plc which attracted $323.24 million and US$163.9 million respectively. With a difference of $35.5 million, Zenith Bank Plc attracted US$128.4 million.
Further analysis of the data shows that there has been a consistent year-onyear decline in the past few years. Capital importation dropped from $23.99 billion in 2019 to $9.66 billion in 2020 and $6.7 billion in 2021. The decline in investment flow over the years is as a result of insecurity which has continued to escalate in the country, thereby forcing foreign investors to rethink investing in the country.