Business

Capital importation dropped by 28% in Q1 2022 — only 6 states secured foreign investment

June 3, 2022 9:43 am

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Capital importation into the country declined by 28.09 percent in the first quarter of 2022, a new report by the National Bureau of Statistics (NBS) has shown.

The total capital imported into the country in the first quarter stood at $1.57 billion, down from $2.19 billion in the preceding quarter.

Only six states out of 36 states and the federal capital territory (FCT), received capital investments in Q1 2022.

These states are Lagos ($1.12 billion), FCT ($446.81 million), Anambra ($4.15 million), Oyo ($2 million), Katsina ($0.70 million), and Plateau ($0.04 million).

Lagos state accounted for 71.16 percent of the total capital inflow in Q1 2022.

Further analysis by TheCable Index shows that the largest amount of capital importation by type was received through portfolio investment, which accounted for 60.87 percent ($957.58 million).

This was followed by other investments with 29.28 percent ($460.59 million) and foreign direct investment (FDI) accounted for 9.85 percent ($154.97 million) of total capital imported in Q1 2022.

The highest sectors that received capital investment were banking ($818.84 million), production ($223.67 million), and financing sector ($199.37 million), while consultancy ($0.03 million); IT services ($0.27 million); and construction ($0.40 million) sectors received the lowest capital investment.

By banks, Standard Chartered Bank Nigeria emerged at the top of capital investment with $543.20 million (34.53 percent), followed by Citi Bank Nigeria Limited with $439.03 million (27.91 percent) and Stanbic IBTC Bank Plc with $251.52 million (15.99 percent).

Meanwhile, Keystone Bank Limited ($0.16 million); United Bank for Africa ($0.72 million); and First Bank of Nigeria ($1.55 million) were the least banks with capital inflows.

The top three highest capital importation by country into Nigeria were United Kingdom ($1.02 billion), which accounted for 64.92 percent of the total capital inflow in Q1 2022; South Africa ($117.50 million); and the United States of America ($82.07 million).