Ngeria’s capital importation rose dramatically by 210.16% in the first quarter of 2024 compared to the previous quarter, reaching $3.38 billion, according to the National Bureau of Statistics (NBS). This marks a significant year-on-year increase of 198.06% from $1.13 billion in Q1 2023.
The surge was driven primarily by portfolio investments, which contributed $2.08 billion or 61.48% of the total capital imported. Other investments accounted for $1.18 billion or 34.99%, while foreign direct investment (FDI) was the lowest at $119.18 million, making up just 3.53% of the total.
The banking sector led the inflow with $2.07 billion, representing 61.24% of the total capital imported. The trading sector followed with $494.93 million or 14.66%, and the production/manufacturing sector received $191.92 million, accounting for 5.68%.
The NBS report highlighted that the majority of the capital importation originated from the United Kingdom, which contributed $1.81 billion or 53.49%. This was followed by the Republic of South Africa with $582.34 million (17.25%) and the Cayman Islands with $186.21 million (5.52%).
Among Nigerian states, Lagos was the top destination for capital importation, attracting $2.78 billion or 82.42% of the total. Abuja (FCT) followed with $593.58 million (17.58%), and Ekiti State recorded a minimal $0.01 million.
Stanbic IBTC Bank Plc received the highest capital importation among banks with $1.25 billion, representing 37.24% of the total. Citibank Nigeria Limited and Rand Merchant Bank Plc followed with $547.71 million (16.22%) and $528.73 million (15.66%), respectively.
While this significant increase in capital importation may seem to reflect growing foreign investment confidence in Nigeria’s banking sector, the country is plagued with several economic crisis which has seen major firms and companies withdraw their investment.
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