October 07, (THEWILL) – The total value of capital importation into Nigeria in the second quarter of the year fell to $1.03 billion from $1.13 billion in the preceding quarter, the National Bureau of Statistics (NBS) said on Friday.
It represents a nine per cent decline compared to the previous quarter, according to the NBS report titled, ‘Nigerian Capital Importation Q2 2023′.
Capital importation means foreign investments in a country’s economy and is made up of Foreign Direct Investment (FDI), Portfolio Investment, and other investments.
On a year-on-year basis, the country’s capital importation declined by 32.9 per cent compared to the second quarter of 2022.
“In Q2 2023, total capital importation into Nigeria stood at $1,030.21 million, lower than $1,535.35 million recorded in Q2 2022, indicating a decrease of 32.90 per cent7
“When compared to the preceding quarter, capital importation fell by 9.04 per cent from $1,132.65 million in Q1 2023,” the NBS said.
The statistical office said other investments ranked top, accounting for 81.28 per cent ($837.34 million) of total capital importation in Q2 2023.
This was followed by Portfolio Investment with 10.37 per cent ($106.85 million) and Foreign Direct Investment (FDI) with 8.35 per cent ($86.03 million).
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According to the bureau, the production sector recorded the highest inflow with $605.04 million, representing 58.73 per cent of total capital imported in Q2 2023.
This, the bureau said, was followed by the banking sector, valued at $194.58 million (18.89 per cent), and Shares with $68.63 million (6.66 per cent).
The NBS noted that capital importation during the reference period originated largely from the United States with $271.92 million, accounting for 26.39 per cent, followed by Singapore and South Africa with $177.44 million (17.22 per cent) and $136.95 million (13.29 per cent) respectively.
It said by destination of investment, Lagos State remained the top destination in Q2 2023 with $778.06 million, accounting for 75.52 per cent of total capital.
This, it said, was followed by Abuja (FCT), with $194.28 million (18.86 per cent).
Nigeria’s capital importation has been on the decline since the COVID-19 pandemic and worsened by uncertainties fuelled by the 2023 general election as well as the nation’s forex crisis.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
