NBS: Foreign capital inflow declined to $654m in Q3 — lowest in 10 years

Capital importation dropped by 36.45 percent in the third quarter (Q3) of 2023, according to the National Bureau of Statistics (NBS).

The bureau said the total capital imported stood at $654.65 million, down from the $1.03 billion recorded in Q2 2023.

NBS data for Q3 is the lowest capital importation into the country in over 10 years.

Capital importation is divided into three main investment types: foreign direct investment (FDI), foreign portfolio investment (FDI) and other investments — each comprising various sub-categories.

According to NBS, $59.77 million is credited to foreign direct investment, portfolio investment has $87.11 million and other investments have $507.77 million.

“In Q3 2023, total capital importation into Nigeria stood at US$654.65 million, lower than US$1,159.67 million recorded in Q3 2022, indicating a decline of 43.55%,” NBS said.

“In comparison to the preceding quarter, capital importation fell by 36.45% from US$1,030.21 million in Q2 2023.

“Other Investment ranked top accounting for 77.56% (US$507.77 million) of total capital importation in Q3 2023, followed by Portfolio Investment with 13.31% (US$87.11 million) and Foreign Direct Investment (FDI) with 9.13% (US$59.77 million).”

The report also shows that the production sector recorded the highest inflow with $279.51 million, representing 42.70 percent of total capital imported in the quarter.

This was followed by the financial sector, which recorded $127.93 million (19.54 percent), and shares accounted for $85.49 million (13.06 percent).

In the period under review, the Netherlands was the largest source of foreign capital imported into Nigeria, accounting for 26.83 percent ($175.62 million).

Singapore and United States were the next largest sources, holding 12.09 percent ($79.15 million) and 10.24 percent ($67.04 million), respectively.

NBS said: “Lagos state remained the top destination in Q3 2023 with US$308.83 million, accounting for 47.18% of total capital importation, followed by Abuja (FCT) with US$194.66 million (29.73%) and Abia state with US$150.09 million (22.93%).”

“Stanbic IBTC Bank Plc received the highest capital importation into Nigeria in Q3 2023 with US$222.84 million (34.04%), followed by Citibank Nigeria Limited with US$190.03 million (29.03%) and Zenith Bank Plc with US$83.04 (12.68%).”

President Bola Tinubu, since he assumed office, has continued to reiterate his administration’s commitment to ensuring consistency in policy and a better business climate to attract investments.