Nigeria imported $2.60 billion in capital in the second quarter of 2024, a significant rise of 152.81% year over year from $1.03 billion in the same period in 2023.
This is in line with the National Bureau of Statistics’ most recent capital importation data, which was made public on Tuesday.
The amount represents a 22.85% decrease from the $3.38 billion recorded in the first quarter of 2024, even with this significant annual growth.
The quarterly results have decreased, indicating persistent changes in investor mood that are a reflection of both domestic and global economic worries.
“Total capital importation into Nigeria stood at US$2,604.50 million in Q2 2024, higher than US$1,030.21 million recorded in Q2 2023, indicating an increase of 152.81%,” the study stated. Q1 2024 capital imports were US$3,376.01 million, a 22.85% decrease from the previous quarter.
With a $1.40 billion contribution, or 53.93 percent of the total, portfolio investments became the main source of capital inflows.
In order to get rapid profits, international investors frequently pump money into Nigerian equities, bonds, and other financial assets.
With $1.17 billion, or 44.92 percent of the total inflows, other investments—which include loans, trade credits, and other debt financing—came next.
But with only $29.83 million, or 1.15 percent of the total, Foreign Direct Investment (FDI) fell well short of expectations.
This pattern indicates that Nigeria continues to face difficulties luring long-term investment that may fuel steady economic growth and job creation.
With $1.12 billion, or 43.15 percent of all inflows during the quarter, the banking industry benefited most from capital importation.
Because of this sector’s dominance, banks play a critical role in serving as intermediaries for foreign investments and opening up access to Nigeria’s financial markets.
After the banking industry, the manufacturing and production sector brought in $624.71 million, or 23.99 percent of the total.
This surge in manufacturing and production portends well for industrial activity and may even be a sign of a slow recovery in Nigeria’s manufacturing capability.
The trading sector experienced noteworthy inflows of capital, totaling $569.22 million (21.86 percent), which demonstrates the robustness of the nation’s trade activity.
With $1.37 billion, or 52.52% of total inflows, Lagos State continued to hold its position as the top geographic destination for capital importation.
Because of its strong infrastructure and vibrant economic environment, Lagos continues to be the commercial center of Nigeria and provides a valuable entry point for foreign investors.
With $1.24 billion, or 47.48 percent of the total, Abuja (FCT) came in second.
Only $0.0003m in capital inflows were recorded by Ekiti State during the quarter, in contrast, suggesting that investment was concentrated in more established economic hubs.
The sources of these inflows of capital were also emphasized in the report. The United Kingdom was the biggest contributor, accounting for $1.12 billion (43.01 percent) of all capital imports. This solidifies the UK’s standing as an important player in Nigeria’s financial system.
The Republic of South Africa came in third place with $255.98 million (9.83 percent), followed by the Netherlands in second place with $577.82 million (22.19 percent).
With $818.46 million, or 31.43 percent of total inflows, Citibank Nigeria Limited led the way among banks.
Rand Merchant Bank Plc received $488.59 million (18.76 percent), Standard Chartered Bank Nigeria Limited came in second with $654.79 million (25.14 percent).
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