Nigeria’s foreign capital rises by 66.27% in Q4 2023, says NBS

The National Bureau of Statistics (NBS) in a report disclosed that Nigeria witnessed a significant uptick in capital inflows, marking a 66.27per cent surge in fourth quarter (Q4) 2023 when juxtaposed with figures from the third quarter (Q3) 2023.

The numbers rose from a previous $654.65 million in Q3 2023 to $1.09 billion in the final quarter of the year, signalling a robust recovery and a positive response to the economic strategies President Bola Tinubu’s administration deployed to enhance the nation’s investment appeal.

As documented in the recent report by the NBS, this rejuvenation in capital importation underscores the effectiveness of governmental policies and highlights a year-on-year growth.

Comparatively, the Q4 2023 figures slightly surpassed the $1.06 billion milestone achieved in the same period in 2022, presenting a modest year-on-year improvement of 2.62per cent.

Such a turnaround is symbolic of the resilience of Nigeria’s economic landscape, and the current upswing in capital inflows could be interpreted as investor confidence in the country’s market potential and the administrative direction under Tinubu.

In a detailed breakdown of Nigeria’s capital importation for Q4 2023, “Other Investment” emerged as the dominant category, capturing the lion’s share of 54.64 per cent or $594.74 million of the total capital inflows.

This was closely followed by Portfolio Investment, which accounted for 28.46 per cent or $309.76 million, while Foreign Direct Investment (FDI) contributed 16.90 per cent or $183.97 million to the mix.

Sector-wise, the production/manufacturing sector led the pack with an impressive $450.11 million, making up 41.35 per cent of the quarter’s total capital inflow.

The banking sector followed suit, securing $283.30 million, or 26.03 per cent of the investments, with the financing sector also making a notable entry at $135.59 million, representing 12.46 per cent of the total capital imported into Nigeria during the period under review. 

According to NBS, in Q4 2023, the bulk of Nigeria’s capital importation was significantly influenced by investments from the United Kingdom.

This led the chart with a contribution of $267.24 million, representing a 24.55 per cent share of the total inflows.

Mauritius followed closely, channelling $226.18 million into Nigeria’s economy, accounting for 20.78 per cent of the overall capital importation.

The Netherlands also made a substantial impact, with investments amounting to $149.93 million, thus holding a 13.77 per cent share of the total capital imported into the country in Q4 2023. 

In the fourth quarter of 2023, Lagos State solidified its position as Nigeria’s premier investment hub, attracting a substantial $771.68 million in capital importation, which accounted for 65.38 per cent of the nation’s total capital inflows.

Following in significance was Abuja (FCT), which drew $370.80 million, representing 34.07 per cent of the overall capital importation.

Rivers State also featured on the investment map, albeit with a modest sum of $6.00 million, making up 0.55 per cent of the total capital imported into Nigeria during this period. 

Capital imports by banks  

In Q4 2023, Stanbic IBTC Bank Plc emerged as the foremost recipient of importation into Nigeria, amassing $499.45 million, which translates to a commanding 45.88 per cent of the total capital inflows.

Citibank Nigeria Limited secured the second position, attracting $229.06 million or 21.04 per cent of the aggregate capital imported.

Rand Merchant Bank Plc also made a notable entry, garnering $85.85 million and accounting for 7.89 per cent of Nigeria’s total capital importation in the final quarter of the year.