NBS: Foreign capital inflow declined by 9% to $1bn in Q2 2023

Capital importation dropped by 9 percent in the second quarter (Q2) of 2023, according to the National Bureau of Statistics (NBS).

The bureau said the total capital imported stood at $1.03 billion, down from the $1.13 billion recorded in Q1 2023.

This, the NBS said, marks a 9 percent decline on a quarter-to-quarter basis, and a 32.9 percent drop on a year-to-year review.

“In Q2 2023, total capital importation into Nigeria stood at US$1,030.21 million, lower than US$1,535.35 million recorded in Q2 2022, indicating a decrease of 32.90%,” the report reads.

“When compared to the preceding quarter, capital importation fell by 9.04% from US$1,132.65 million in Q1 2023.

”Other Investment ranked top accounting for 81.28% (US$837.34 million) of total capital importation in Q2 2023, followed by Portfolio Investment with 10.37% (US$106.85 million) and Foreign Direct Investment (FDI) with 8.35% (US$86.03 million).”

The report also shows that the production sector recorded the highest inflow with $605.04 million, representing 58.73 percent of total capital imported in the quarter.

This was followed by the banking sector, valued at $194.58 million (18.89 percent), and shares accounting for $68.63 million (6.66 percent).

In the period under review, the United States was the largest source of foreign capital imported into Nigeria, gulping 26.39 percent ($271.92 million). Singapore and South Africa were the next largest sources, at 17.2 percent ($177.44 million) and 13.29 percent ($136.95 million), respectively.

“Lagos state remained the top destination in Q2 2023 with US$778.06 million, accounting for 75.52% of total capital, followed by Abuja (FCT), with US$194.28 million (18.86%),” the report further reads.

“First Bank of Nigeria Limited received the highest capital into Nigeria in Q2 2023 with US$323.13 million (18.23%), followed by Citibank Nigeria Limited with US$187.77 million (12.23%) and Rand Merchant Bank with US$126.03 (6.47%).”

President Bola Ahmed Tinubu, since his assumption of office, has continued to reiterate his administration’s commitment to ensuring consistency in policy and a better business climate to attract investment.

In a meeting with Shell Petroleum Development Company (SPDC), Tinubu said attracting investments was “a promise I made personally to Nigerians. Whatever it takes, I will fulfil that promise to Nigerians”.