Emmanuel Ochayi
In the second quarter of 2023, Nigeria experienced a notable downturn in foreign capital importation, marking a 9.04% decrease when compared to the preceding quarter (the first three months of 2023). These findings were revealed in the latest foreign capital report published by the National Bureau of Statistics (NBS).
When taking a year-on-year perspective, the decline in foreign capital was even more significant, plummeting by 32.90% from $1.53 billion in the second quarter of 2022 to a total of $1.03 billion in Q2, 2023.
Join our WhatsApp ChannelBreaking down the investment categories and sectors, it’s evident that accounting and finance emerged as the top recipient, attracting a staggering 81.28% of all capital imports, equivalent to $837.34 million. Following closely was Portfolio Investment, contributing 10.37% (US$106.85 million), while Foreign Direct Investment (FDI) comprised 8.35% ($86.03 million).
Delving deeper into the sectors, the production sector stood out, welcoming a significant influx of capital amounting to $605.04 million, which constituted 58.73% of the total capital imports. The banking sector followed, registering at $194.58 million (18.89%), with shares trailing behind at $68.63 million (6.66%).
Turning to a regional perspective, Lagos state continued to dominate the capital importation rankings, securing a whopping $778.06 million, representing 75.52% of total capital imports. It was closely trailed by Abuja, which accounted for $194.58 million (18.89%). Together, these two regions accounted for a striking 93.3% of the total capital imports, while the remaining 35 states collectively brought in just $68.63 million (6.66%) in foreign capital.
Examining the origin of foreign capital, the United States led the way, contributing $271.92 million, constituting 26.39% of the total. Singapore and the Republic of South Africa followed closely, recording $177.44 million (17.22%) and $136.95 million (13.29%), respectively.
When it comes to individual banks, First Bank of Nigeria Limited attracted the most substantial capital inflow into Nigeria during the second quarter of 2023, with an impressive $323.13 million, representing 18.23% of the total. Following closely were Citibank Nigeria Limited, which received $187.77 million (12.23%), and Rand Merchant Bank with $126.03 million (6.47%).
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
