Foreign Capital Inflows to Nigeria Falls by 27% in 2023
Capital importation into the Nigerian economy slumped by about 27% between 2022 and 2023, data from the National Bureau of Statistics showed. According to the latest capital importation report published by the statistics office, Nigeria attracted a total of $3.91 billion in 2023.
The amount translates to 26.7% year-on-year decline from $5.33 billion in 2022, and marks the lowest inflow since 2007, according to Investment banking firm Cowry Asset Limited.
Analysts see the amount as a major decline compared to the total inflow of $5.99 billion in 2010, and the total inflow in 2013, 2014 and 2019 were $23.6 billion, $20.8 billion and $23.7 billion respectively.
In Q4 2023, total capital importation into Nigeria stood at US$1,088.48 million, slightly higher than US$1,060.73 million recorded in Q4 2022, indicating an increase of 2.62%. In comparison to the preceding quarter, capital importation rose by 66.27% from US$654.65 million in Q3 2023.
Other Investment ranked top accounting for 54.64% or US$594.74 million of total capital importation in Q4 2023, followed by Portfolio Investment with 28.46% or US$309.76 million and Foreign Direct Investment (FDI) with 16.90% (US$183.97 million).
The production/manufacturing sector recorded the highest inflow with US$450.11 million, representing 41.35% of total capital imported in Q4 2023, followed by the banking sector, valued at US$283.30 million (26.03%), and financing with US$135.59 million (12.46%).
Capital Importation during the reference period originated largely from the United Kingdom with US$267.24 million and recorded 24.55% share. This was followed by Mauritius with US$226.18 million (20.78%) and the Netherlands with US$149.93 million (13.77%).
Lagos State remained the top destination in Q4 2023 with US$771.68 million, accounting for 65.38% of total capital importation, followed by Abuja (FCT) with US$370.80 million (34.07%) and Rivers state with US$6.00 million (0.55%).
Stanbic IBTC Bank Plc received the highest capital importation into Nigeria in Q4 2023 with US$499.45 million (45.88%), followed by Citibank Nigeria Limited with US$229.06 million (21.04%) and Rand Merchant Bank Plc with US$85.85 (7.89%). #Foreign Capital Inflows to Nigeria Falls by 27% in 2023 Court Orders FCMB to Deposit N540m Defamation Damage Awarded to Prophet Omale
