Olufemi Adeyemi
A recent report published by the National Bureau of
Statistics (NBS) revealed a significant increase in the total capital inflow
into Nigeria during the first quarter of 2024. Specifically, capital
importation witnessed a substantial rise of 210.16 percent, amounting to $3,376
million.
As per the report, there has been an increase from $1,088
million recorded in the fourth quarter of 2023.
The increase has surpassed the $1,132 million recorded in
the first quarter of 2023, reflecting a substantial growth of 198 percent.
A more detailed analysis of the report revealed that
Portfolio Investment was the dominant category, accounting for a substantial
61% or US$2,075 million. Other investments followed, contributing approximately
35% or US$1,181 million.
Foreign Direct Investment accounted for the lowest amount of
total capital inflows in Q1 2024, with a recorded value of US$119 million,
representing 3.53% of the total capital imported during that period.
During the specified time frame, the banking industry saw
the most significant influx of capital, accounting for 61.24% of the total
capital imported in Q1 2024. This amounted to USD 2,067 million. The trading
sector followed with an inflow of approximately USD 494 million, representing
14.66% of the total, while the production and manufacturing sector attracted
approximately USD 192 million, accounting for 5.66% of the total capital
imported.
During the reference period, the majority of capital
importation originated from the United Kingdom, accounting for approximately
53.49% or $1,806 million of the total capital imported.
Subsequently, the Republic of South Africa contributed $582
million (17.25 percent), followed by the Cayman Islands with a contribution of
US$186 million (5.52 percent).
Among the three states that experienced capital inflow
during the quarter, Lagos State maintained its position as the primary
destination, attracting $2,782 million, which represented 82% of the total
capital imported.
The city of Abuja secured the second position with a notable
investment of $593 million, accounting for 17.58 percent of the total
investments. Ekiti state, on the other hand, received a minimal investment of
$0.01 million.
In the first quarter of 2024, Stanbic IBTC Bank Plc was the
recipient of the highest amount of capital imported into Nigeria, with an
impressive $1,257 million, representing 37.24% of the total capital Inflow.
Citibank Nigeria Limited followed closely behind, securing approximately $548
million (16.22%), while Rand Merchant Bank Plc secured approximately $529
million (15.66%).