The National Bureau of Statistics (NBS) has reported a substantial 36.45% decline in capital importation in Nigeria during the third quarter (Q3) of 2023. According to NBS data, the total imported capital plummeted to $654.65 million, starkly contrasting the $1.03 billion recorded in the previous quarter.
This marks the lowest capital importation into the country in over a decade, reflecting a challenging economic landscape. The NBS categorizes capital importation into three main types: foreign direct investment (FDI), foreign portfolio investment (FPI), and other investments.
The breakdown reveals that foreign direct investment accounted for $59.77 million, portfolio investment had $87.11 million, and other investments constituted $507.77 million. The report states, “Other Investment ranked top accounting for 77.56% (US$507.77 million) of total capital importation in Q3 2023, followed by Portfolio Investment with 13.31% (US$87.11 million) and Foreign Direct Investment (FDI) with 9.13% (US$59.77 million).”
Comparing Q3 2023 to the same period in the previous year, there was a notable decline of 43.55%. Additionally, capital importation fell by 36.45% compared to the preceding quarter, indicating a concerning trend.
The production sector attracted the highest inflow with $279.51 million, constituting 42.70% of the total capital imported in the quarter. Following closely, the financial sector recorded $127.93 million (19.54%), and shares accounted for $85.49 million (13.06%).
The Netherlands emerged as the largest source of foreign capital imported into Nigeria, contributing 26.83% ($175.62 million). Singapore and the United States followed, holding 12.09% ($79.15 million) and 10.24% ($67.04 million) respectively.
Lagos state retained its position as the top destination in Q3 2023, attracting $308.83 million, equivalent to 47.18% of total capital importation. Abuja (FCT) and Abia state followed with $194.66 million (29.73%) and $150.09 million (22.93%) respectively.
The report also highlighted the key financial institutions receiving the highest capital importation in Q3 2023, with Stanbic IBTC Bank Plc leading at $222.84 million (34.04%), followed by Citibank Nigeria Limited with $190.03 million (29.03%), and Zenith Bank Plc with $83.04 million (12.68%).