Banking, trading, manufacturing sectors lead as capital importation surges by 210% in Q1 2024- NBS

The banking, trading and manufacturing sectors led the way as Nigeria’s capital importation grew by 210.16 percent in the first quarter (Q1) of 2024.

This is according to the latest Nigeria Capital Importation Q1 2024 report published by the National Bureau of Statistics (NBS) on Monday.

Capital importation is the inflow of funds from abroad to fuel investment, trade, and manufacturing within a country.

According to the report, the banking sector recorded the highest inflow with $2.07 billion, representing 61.24 percent of total capital imported in Q1 2024,” the NBS said.

The trading sector recorded $494.93 million (14.66 percent), while production and manufacturing sector received $191.92 million (5.68 percent).

The report further stated that the total capital imported stood at $3.38 billion in Q1 2024, up from the $1.09 billion recorded in Q4 2023.

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On a year-on-year basis, the NBS data show that foreign investment into the country grew by 198.06 percent compared to $1.13 billion in Q1 2023.

“In Q1 2024, total capital importation into Nigeria stood at US$3,376.01 million, higher than US$1,132.65 million recorded in Q1 2023, indicating an increase of 198.06%,” NBS said.

“In comparison to the preceding quarter, capital importation rose by 210.16% from US$1,088.48 million in Q4 2023.”

The bureau said foreign portfolio investments (FPI) ranked top with $2.08 billion, accounting for 61.48 percent, followed by other investments with $1.18 billion, accounting for 34.99 percent.

Foreign direct investment (FDI) recorded the least, with $119.18 million (3.53 percent) of total capital importation in Q1 2024.

“Capital importation during the reference period originated largely from the United Kingdom with US$1,805.83 million, showing 53.49% of the total capital imported,” the bureau said.

“This was followed by Republic of South Africa with US$582.34 million (17.25%) and the Cayman Islands with US$186.21 million (5.52%).”

According to NBS, only Lagos, Abuja and Ekiti states attracted capital importation.

Lagos State remained the top destination with $2.78 billion, accounting for 82.42 percent of the total imported capital, Abuja (FCT) followed with $593.58 million (17.58 percent), and Ekiti State with $12,750 million.

NBS said Stanbic IBTC Bank Plc received the highest capital importation by banks, recording $1.25 billion (37.24 percent) during the reviewed period, Citibank Nigeria Limited got $547.71 million (16.22 percent) and Rand Merchant Bank Plc received $528.73 (15.66 percent).

By: Babajide Okeowo

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