Five takeaways from NBS’s latest capital importation report

The National Bureau of Statistics (NBS) has released its latest capital importation report for the third quarter of 2023.

According to the report, foreign investments into Nigeria dropped on a year-on-year basis by 43.6 percent to $654.7 million Q3 from $1.16 billion in the same period of 2022.

It also fell on a quarter-on-quarter basis by 36.5 percent from $1.03 billion in Q2.

This shows that Africa’s biggest economy is finding it increasingly hard to attract investments despite reforms implemented by the current administration to lure back foreign investors in a bid to boost economic growth.

Here are five highlights from the report

Manufacturing/production sector recorded the highest inflow

This sector recorded the highest inflow of $279.5 million, representing 42.7 percent of total capital imported in the Q3, followed by the financing sector valued at $127.9 million (19.54 percent), and shares with $85.49 million (13.06 percent).

Stanbic IBTC Bank received the highest investments

Stanbic IBTC Bank received the highest capital importation into Nigeria with $222.8 million (34.0 percent), followed by Citibank Nigeria Limited with $190.03 million (29.0 percent) and Zenith Bank with $83.04 (12.7 percent).

Other investment topped portfolio and Foreign Direct Investments

Other investments ranked top accounting for $507.8 million (77.6 percent) of total capital importation, followed by portfolio investment with $87.1 million (13.3 percent) and Foreign Direct Investment with $59.8 million (9.13 percent).

Nigeria got highest investment from the Netherlands

The top five countries of origin for Nigeria’s capital importation are the Netherlands with $175.6 million, Singapore with $79.2 million, the United States with $67.0 million, the United Kingdom ($64.9 million) and the United Arab Emirates ($48.8 million).

“Capital importation during the reference period originated largely from the Netherlands with $175.6 million, and recorded 26.8 percent share,” the report said.

Lagos had highest investments

The top five destinations of investments are Lagos State with $308.8 million, Abuja (FCT) with $194.7 million, Abia State with $150.1 million, Ogun State with $1 million and Akwa Ibom State with $0.07 million.

Lagos remained the top destination in Q3 accounting for 47.2 percent of total capital importation, followed by Abuja (29.7 percent) and Abia State (22.9 percent).