Capital Imported to Nigeria Spikes 200% to $3.376bn
Total capital importation into Nigeria surged by about 200% in 12 months to $3.376 billion, latest data released by the statistics office showed. The increase in capital flows into the country has been attributed to ongoing economic reform and elevated yield in the fixed income market.
Specifically, the financial market was flooded with capital flows from portfolio investors to take advantage of Nigeria’s high interest rate environment which has pushed spot rates on borrowing instrument to double digit high.
According to National Bureau of Statistics, total capital importation into Nigeria stood at US$3,376.01 million at the end of first quarter of 2024.
The amount brought to Nigeria in the period was higher than US$1,132.65 million recorded in Q1 2023, indicating an increase of 198.06%, according to NBS.
The Bureau stated that capital importation rose by 210.16% from US$1,088.48 million in Q4 2023 to the current figure released for the first quarter of the year.
Foreign investors brought more cash into the economy in the period while Stanbic IBTC acted as major conduit for imported capital in the period.
Portfolio Investment ranked top with US$2,075.59 million, accounting for 61.48%, followed by Other Investment options with US$1,181.25 million, accounting for 34.99%, according to NBS.
The report however explained that foreign direct investment recorded the least with US$119.18 million, accounting for 3.53% of total capital importation in Q1 2024.
The Banking sector recorded the highest inflow with US$2,067.44 million, representing 61.24% of total capital imported in Q1 2024, followed by the trading and also manufacturing sector.
Total value of US$494.93 million was receive from trading sector, which accounted for 14.66% of aggregate receipts into Nigeria. Also, Production/Manufacturing sector saw an inflow of US$191.92 million, accounting for 5.68% of total imported capital.
NBS said capital importation during the reference period originated largely from the United Kingdom with US$1,805.83 million, showing 53.49% of the total capital imported.
This was followed by Republic of South Africa with US$582.34 million, which contributed 17.25% of the total inflows and the Cayman Islands with US$186.21 million, accounting for 5.52% of total sum.
NBS said out of the three states that recorded capital importation during the quarter, Lagos state remained the top destination with US$2,782.41 million.
In Q1, Lagos accounted for 82.42% of the total capital imported. Abuja (FCT) followed with US$593.58 million, accounting for 17.58%, and Ekiti state with US$0.01 million.
Stanbic IBTC Bank Plc received the highest capital importation into Nigeria in Q1 2024 with US$1,257.38 million (37.24%), followed by Citibank Nigeria Limited with US$547.71 million (16.22%) and Rand Merchant Bank Plc with US$528.73 (15.66%). Portugal Into Euro 2024 Last Eight After Costa’s Saves, Ronaldo’s Tears
