Nigeria’s capital importation fell sharply by 51.90 per cent in the third quarter of 2024, totaling $1.25 billion, down from $2.60 billion in Q2 2024.
However, this represents a 91.35 per cent increase compared to $654.65 million in Q3 2023, according to the National Bureau of Statistics.
The decline was primarily driven by reduced foreign direct investment, which accounted for only 8.29 per cent of total inflows. Portfolio investments dominated at 71.79 per cent, with the banking sector receiving the largest share, attracting $579.48 million.
The capital importation for Q3 was also the lowest inflows recorded this year.
The Q3 2024 figure also reflects a sharp contrast to $3.4 billion inflows recorded in the first quarter (Q1) of the year, signaling a three straight decline this year.
This was driven by a 35.98 per cent decline in the country’s portfolio investment to $899 million from $1.4 billion in the previous quarter and a 78.67 per cent decline in its other investment during the period under review.
Despite the slump in overall capital importation, foreign investment into Nigeria increased by 248.07 per cent to $103 billion in Q3 from $289.8 billion in Q2, reflecting renewed confidence in the economy, albeit gradually.
The report said, “In Q3 2024, total capital importation into Nigeria stood at $1,252.66 million, higher than $654.65 million recorded in Q3 2023, indicating an increase of 91.35 percent. In comparison to the preceding quarter, capital importation declined by 51.90 per cent from $2,604.50 million in Q2 2024.”
The NBS report noted that capital importation during the reference period originated largely from the United Kingdom with $502.60 million, showing 40.12 per cent of the total capital imported.
“This was followed by the Republic of South Africa with $185.03 million (14.77 per cent) and the United States with $163.86 million (13.08 per cent).”
In terms of states that recorded capital importation investment, the report said five states – Lagos state (51.92 per cent), Abuja (FCT 47.9 per cent), Kaduna state (0.16 per cent), Enugu and Ekiti – reported the highest inflows.
On the other hand, Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Taraba, Yobe, and Zamfara have not generated FDIs in the last six years, it disclosed.
The report further disclosed that, “Standard Chartered Bank Nigeria Limited received the highest capital importation into Nigeria in Q3 2024 with $385.62 million (30.78 per cent), followed by Stanbic IBTC Bank Plc with $382.08 million (30.50 per cent) and — and Citibank Nigeria Limited with $192.88 (15.40 per cent).
“Seven banks in Q3 did not report any inflow, they include Globus Bank, Heritage Banking Company Limited, NOVA Merchant Bank, Skye Bank Plc, Suntrust Bank Nigeria Ltd, Unity Bank Plc, and Lotus Bank Limited,” the NBS report said.