Nigeria’s total capital imports increased by 210.16% in the first quarter of 2024, from $1.08 billion in Q4, 2023 to $3.37 billion during the time under review.
This was disclosed in the National Bureau of Statistics capital imports report for the first quarter of 2024.
Capital imports grew by 198.06% in the first quarter of 2024, when compared to the previous quarter of 2023.
Portfolio Investments led with $2.07 billion, accounting for 61.48% of the total, followed by Other Investments with $1.18 billion (34.99%).
Foreign direct investment was the smallest, accounting for $119.18 million (3.53%) of total capital imports in Q1 2024.
The Banking sector received the most inflow, $2.06 billion, accounting for 61.24% of total capital imports, followed by the Trading sector at $494.93 million, accounting for 14.66% of capital imports, and the Production/Manufacturing sector at $191.92 million, accounting for 5.68% of capital imports in the country.
Stanbic IBTC also registered over $399 million in capital import inflows in the first quarter of 2024, exceeding its full-year total of $384 million in 2023.
During the reference period, the United Kingdom accounted for the majority of capital importation, at $1.81 billion (53.49%).
The Republic of South Africa came in second with $580 million (17.25%), followed by the Cayman Islands with $190 million (5.52%).
Lagos State was the biggest destination for capital imports during the quarter, accounting for $2.78 billion, or 82.42% of the total.
Abuja (FCT) followed with $590 million (17.58%), while Ekiti State received $0.01 million.
Only three of the 36 states and the FCT recorded capital imports during the time.
Stanbic IBTC Bank Plc had the biggest capital importation into Nigeria in Q1 2024, at $1.26 billion (37.24%), followed by Citibank Nigeria Limited at $0.55 billion (16.22%) and Rand Merchant Bank Plc at $530 million (15.66%).
The CBN’s 600 basis point rise in MPR and the strong returns on FGN bonds and CBN Treasury bills throughout the quarter resulted in a more than 200% increase in capital imports, particularly in portfolio investment.
The low inflow of foreign money into the real economy through foreign direct investment supports the fears of real economy actors following the CBN’s interest rate increase, which they believed would suck capital from the real economy into the financial sector.
