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).
