…portfolio investment dominates as UK tops source of capital
In the first quarter of 2023, Nigeria witnessed a decline in total capital importation which stood at $1,132.65 billion, lower than the $1,573.14 billion recorded in the same period of 2022. This indicates a decrease of 28 percent, according to data released by the statistics bureau.
However, there was a slight increase of 6.78 percent compared to the previous quarter, where capital importation stood at $1,060.73 billion in the fourth quarter of 2022.
During this period, portfolio investment dominated the capital importation landscape, accounting for the largest share of 57.32 percent ($649.28 million) of the total capital imported in Q1 2023, as reported by the National Bureau of Statistics (NBS).
Other investment followed with 38.31 percent ($435.76 million), while Foreign Direct Investment (FDI) accounted for 4.201 percent ($47.60 million).
Analysing the sectors, the banking sector attracted the highest inflow of capital importation, with a total of $304.56 million, representing 26.89 percent of the total capital imported in the first quarter of 2023.
The production sector came second with a value of $256.12 million (22.61 percent), closely followed by IT services with $216.06 million or 19.08 percent.
Regarding the country of origin, capital importation into Nigeria was dominated by funds from the United Kingdom in Q1 2023, reaching $673.64 million, which accounted for 59.47 percent of the total.
The United Arab Emirates and the United States of America followed with values of $108.28 million (9.56 percent) and $95.36 million (8.42 percent) respectively.
In terms of investment destinations, Lagos State retained its position as the top destination in Q1 2023, attracting $704.87 million, which accounted for 62.23 percent of the total capital investment in Nigeria.
The Federal Capital Territory, Abuja, secured the second position with a value of $410.27 million (36.22 percent).
According to the NBS, Citibank Nigeria Limited topped in terms of capital importation by banks in Q1 2023, recording $424.13 million (37.45 percent).
Standard Chartered Bank Nigeria Limited followed closely with $360.33 million (31.81 percent), and Stanbic IBTC Bank held the third position with $151.85 million (13.41 percent).
