Nigeria Capital Importation Hits $3.3 Billion in Q1 2024

• Lagos, Abuja Lead in Investment Inflows

DAILY COURIER — Nigeria's capital importation surged to an impressive $3.3 billion in the first quarter of 2024, marking a significant increase from the $1.1 million recorded in the same period last year. This data was released by the National Bureau of Statistics (NBS) in its report titled “Nigeria Capital Importation Q1 2024.”

According to the NBS, the total capital importation for Q1 2024 stood at $3,376.01 million, a 198.06% rise compared to Q1 2023. The report also highlighted a remarkable 210.16% increase from the preceding quarter (Q4 2023), which had a total of $1,088.48 million.

The report revealed that portfolio investment was the largest contributor, accounting for $2,075.59 million or 61.48% of the total capital imported. This was followed by other investments, which amounted to $1,181.25 million (34.99%). Foreign direct investment (FDI) lagged significantly, contributing just $119.18 million (3.53%).

The banking sector emerged as the primary recipient of capital, with inflows totaling $2,067.44 million (61.24%). The trading sector followed with $494.93 million (14.66%), and the production/manufacturing sector received $191.92 million (5.68%).

The NBS report also detailed the origins of these capital inflows. The United Kingdom was the largest source, contributing $1,805.83 million (53.49%). This was followed by the Republic of South Africa with $582.34 million (17.25%) and the Cayman Islands with $186.21 million (5.52%).

Among the states, Lagos was the clear leader, attracting $2,782.41 million, which accounted for a whopping 82.42% of the total capital imported. The Federal Capital Territory (Abuja) came next with $593.58 million (17.58%), while Ekiti State recorded a minimal $0.01 million.

Notably, Stanbic IBTC Bank Plc received the highest capital importation into Nigeria in Q1 2024 with $1,257.38 million (37.24%), followed by Citibank Nigeria Limited with $547.71 million (16.22%) and Rand Merchant Bank Plc with $528.73 million (15.66%).

The substantial growth in capital importation highlights Nigeria's increasing attractiveness to foreign investors, particularly in the banking and trading sectors, and underscores Lagos' dominant position as the nation's economic hub.