Capital importation falls to $1.25bn, lowest in 2024
Nigeria reported its lowest capital importation inflows this year in the third quarter(Q3) of 2024, falling to $1.25 billion, according to the National Bureau of Statistics (NBS) data released on Saturday.
The Nigeria capital importation report for Q3 of 2024 fell by 51.90 percent from $2.6 billion in the second quarter (Q2) of 2024.
The Q3 2024 figure also reflects a sharp contrast to $3.4 billion inflows recorded in the first quarter (Q1) of the year, signaling a three straight decline this year.
This was driven by a 35.98 percent decline in the country’s portfolio investment to $899 million from $1.4 billion in the previous quarter and a 78.67 percent decline in its other investment during the period under review.
Despite the slump in overall capital importation, foreign investment into Nigeria increased by 248.07 percent to $103 billion in Q3 from $289.8 billion in Q2, reflecting renewed confidence in the economy, albeit gradually.
The report said, “In Q3 2024, total capital importation into Nigeria stood at $1,252.66 million, higher than $654.65 million recorded in Q3 2023, indicating an increase of 91.35 percent. In comparison to the preceding quarter, capital importation declined by 51.90 percent from $2,604.50 million in Q2 2024.”
The NBS report noted that capital importation during the reference period originated largely from the United Kingdom with $502.60 million, showing 40.12 percent of the total capital imported.
“This was followed by the Republic of South Africa with $185.03 million (14.77 percent) and the United States with $163.86 million (13.08 percent).”
In terms of states that recorded capital importation investment, the report said five states – Lagos state (51.92 percent), Abuja (FCT 47.9 percent), Kaduna state (0.16 percent), Enugu and Ekiti – reported the highest inflows.
On the other hand, Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Taraba, Yobe, and Zamfara haven’t generated FDIs in the last six years, it disclosed.
The report further disclosed that, “Standard Chartered Bank Nigeria Limited received the highest capital importation into Nigeria in Q3 2024 with $385.62 million (30.78 percent), followed by Stanbic IBTC Bank Plc with $382.08 million (30.50 percent) and Citibank Nigeria Limited with $192.88 (15.40 percent).
“Seven banks in Q3 didn’t report any inflow, they include Globus Bank, Heritage Banking Company Limited, NOVA Merchant Bank, Skye Bank Plc, Suntrust Bank Nigeria Ltd, Unity Bank Plc, and Lotus Bank Limited,” the NBS report said.
