Nigeria experienced a noteworthy increase in capital inflows, representing a 66.27% rise in comparison to data from the third quarter of 2023.
The Times reported that the figures increased from $654.65 million in Q3 2023 to $1.09 billion in the last quarter of the year, indicating a strong recovery and a favourable reaction to the economic policies implemented by President Bola Tinubu’s government to increase the attractiveness of the country for foreign investment.
This revival in capital importation, as reported in the most recent National Bureau of Statistics report, emphasizes the growth in capital importation year over year and the efficacy of government initiatives.
In contrast, the Q4 2023 data showed a minor year-over-year gain of 2.62%, marginally surpassing the $1.06 billion milestone reached in the same quarter in 2022.
When Nigeria’s capital importation for Q4 2023 was broken down in depth, “Other Investment” stood out as the most important category, accounting for $594.74 million, or 54.64%, of all capital inflows.
Portfolio Investment came in second, with a contribution of 28.46% or $309.76 million, and Foreign Direct Investment with a contribution of 16.90% or $183.97 million.
Production and manufacturing accounted for 41.35% of the overall capital inflow for the quarter, a staggering $450.11 million, placing them at the top of the sector rankings.
As a result, the banking industry received $283.30 million, or 26.03% of the investments, while the financing industry also making a notable entry at $135.59 million, representing 12.46% of the total capital imported into Nigeria during the period under review.
The majority of Nigeria’s capital importation throughout the examined period was heavily impacted by investments from the United Kingdom and having contributed $267.24 million, or 24.55% of the total inflows, this was the largest contributor on the chart.
Following closely behind, Mauritius contributed $226.18 million to Nigeria’s GDP, or 20.78% of all capital imports.
With investments totaling $149.93 million, the Netherlands had a significant influence as well, accounting for 13.77% of all capital brought into the nation in Q4 2023.
Lagos State maintained its status as Nigeria’s top investment destination in the fourth quarter of 2023, drawing a sizeable $771.68 million in capital imports, or 65.38% of the country’s overall capital inflows.
The next most important was Abuja, which attracted $370.80 million, representing 34.07% of the overall capital importation.
The majority of Nigeria’s capital importation throughout the examined period was heavily impacted by investments from the United Kingdom and having contributed $267.24 million, or 24.55% of the total inflows, this was the largest contributor on the chart.
Although it contributed only a meagre $6.00 million, Rivers State was included on the investment map and accounted for 0.55% of all capital brought into Nigeria during this time.
Stanbic IBTC Bank Plc was the largest importer into Nigeria in Q4 2023, with $499.45 million in total, or 45.88% of all capital inflows.
Second place went to Citibank Nigeria Limited, which brought in $229.06 million, or 21.04% of the total amount of capital imported.
Another noteworthy addition was Rand Merchant Bank Plc, which brought in $85.85 million, or 7.89% of Nigeria’s total capital imports in the last quarter of the year.
