Nigeria experiences a substantial surge in capital inflows, soaring by 66.27% in the fourth quarter of 2023 compared to the preceding quarter, according to data from the National Bureau of Statistics (NBS).
Capital inflows escalate from $654.65 million in Q3 2023 to $1.09 billion in Q4 2023, indicating a robust recovery and endorsing the efficacy of economic policies implemented under President Bola Tinubu’s administration.
The rejuvenation in capital importation underscores the resilience of Nigeria’s economic landscape, with a modest year-on-year growth of 2.62% compared to Q4 2022, reinforcing investor confidence in the country’s market potential and administrative direction.
Investment by Type and Sector
“Other Investment” emerges as the dominant category, capturing 54.64% ($594.74 million) of total capital inflows, followed by Portfolio Investment with 28.46% ($309.76 million), and Foreign Direct Investment (FDI) contributing 16.90% ($183.97 million).
In sectoral distribution, the production/manufacturing sector leads with $450.11 million, followed by the banking sector with $283.30 million and the financing sector with $135.59 million.
Origin of Foreign Capital
The United Kingdom leads in capital inflows with $267.24 million, followed by Mauritius with $226.18 million, and the Netherlands with $149.93 million.
Investment by States
Lagos State remains the premier investment hub, attracting $771.68 million (65.38% of total inflows), followed by Abuja (FCT) with $370.80 million, and Rivers State with $6.00 million.
Capital Imports by Banks
Stanbic IBTC Bank Plc emerges as the top recipient, amassing $499.45 million (45.88% of total inflows), followed by Citibank Nigeria Limited with $229.06 million, and Rand Merchant Bank Plc with $85.85 million.
More Insights
• President Tinubu’s international engagements yield significant results, securing over $15 billion in FDI commitments across various sectors.
• Minister of Information and National Orientation, Mohammed Idris, highlights Nigeria’s commitment to global economic cooperation and immense investment potential.
• Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, notes renewed interest among portfolio investors, affirming a positive trend in investor sentiment and participation in the Nigerian economy.