Capital importation records 4th decline to $1.06bn in Q4, 2022

Capital imported into the country recorded the fourth consecutive quarterly decline to $1.06 billion in the fourth quarter of 2022 (Q4’22), from $1.15 billion in Q3’22.

Data from the National Bureau of Statistics (NBS) Capital importation report for Q4 ’22 showed that Capital Importation fell quarter-on-quarter by 27 per cent to $1.57 billion in Q1’22 from $2.18 billion in Q4 ’21.

In Q2’22, capital importation fell by 2.5 per cent to $1.53 billion and down by 24 per cent to $1.15 billion in Q3’22.

The downward trend continued in Q4’22 when capital importation fell by 7.8 per cent to $1.06 billion.

The NBS stated,“In Q4’22, total capital importation into Nigeria stood at $1.06 billion, lower than $2.18 billion recorded in Q4’21, indicating a decrease of 51 percent. “When compared to the preceding quarter, capital importation also fell by 8.5 percent from $1.15 billion in Q3’22.

“The largest capital importation during the period was received from Other Investment, which accounted for 65.17 per cent ($691.23 million) of total capital imported in Q4’22.

“This was followed by Portfolio Investment with 26.8 per cent ($285.26 million) and Foreign Direct Investment (FDI) with 7.9 per cent ($84.23 mAQillion).  “Disaggregated by Sectors, capital importation into the production sector recorded the highest inflow of $392.54 million, representing 37 per cent of total capital imported in Q4 2022. This was followed by capital imported into the banking sector, valued at $255.45 million (24 percent), and Telecoms with $168.27 million (15.86 per cent).

“Capital Importation by Country of Origin reveals that capital from the United Kingdom ranked top in Q4’22 with $455.24 million, accounting for 42.92 per cent .

“This was followed by the Republic of South Africa and the United Arab Emirates valued at $119.31 million (11.25 percent) and $116.82 million (11.01 per cent) respectively.

“By Destination of Investment, Lagos state remained the top destination in Q42  22 with $600.54 million, accounting for 56.62 per cent of total capital investment in Nigeria.

This was followed by Abuja (FCT), valued at $424.50 million (40 percent).

“Categorization of Capital Importation by Banks shows that Citibank Nigeria Limited ranked top in Q4’22 with $308.72 million (29 per cent).

“This was followed by Standard Chartered Bank Nigeria Limited with $232.45 million (21.9 per cent) and Rand Merchant Bank with $102.00 (9.62 per cent).

“However, on an annual basis, capital importation was $5.3 billion in 2022, a decrease of 20.47 per cent from $6.7 billion in 2021.”