The National Bureau of Statistics (NBS) has reported that Nigeria’s total capital importation in the second quarter of this year, remarkably decreased to US$1,030.21 million, lower than US$1,535.35 million recorded in Q2 2022.
The Q2 2023 figures indicated a decrease of 32.90% year-on-year (Y-o-Y) but when compared to the preceding quarter, the nation’s capital importation fell by 9.04% from US$1,132.65 million.
According to the national statistics coordinating agency, when analyzed on categories’ basis, Other Investment ranked top accounting for 81.28% (US$837.34 million) of total capital importation in the quarter under review, followed by Portfolio Investment with 10.37% (US$106.85 million) and Foreign Direct Investment (FDI) ranked third with 8.35% (US$86.03 million).
A further analysis of the Bureau’s ‘Nigeria Capital Importation Q2 2023’ report reflected that on sectorial performance, the Production sector recorded the highest inflow with US$605.04 million, representing 58.73% of total capital imported in the quarter, followed by the Banking sector, valued at US$194.58 million (18.89%), and Shares with US$68.63 million (6.66%).
The NBS further clarified that on regional basis, capital importation in Q2 2023 originated largely from the United States with US$271.92 million, accounting for 26.39%, followed by Singapore and the Republic of South Africa with US$177.44 million (17.22%) and US$136.95 million (13.29%) respectively.
On the destination of the imported capital during the quarter under review, the report showed that Lagos state remained the top destination with US$778.06 million, thereby accounting for 75.52% of total capital, followed by Abuja (FCT), with US$194.28 million (18.86%).
The Bureau also reported that First Bank of Nigeria (FBN) received the highest capital imported to the country in Q2 2023 with US$323.13 million (18.23%), followed by Citibank Nigeria Limited with US$187.77 million (12.23%) and Rand Merchant Bank with US$126.03 (6.47%).
Investment analysts believe that the sharp decline in capital importation to Nigeria in the quarter under review may not be unconnected with the political uncertainties of the 2023 general elections and transition to a new administration, which has generated serious controversies and legal actions of the losers challenging the results of the elections.
