Investment inflow into the Nigerian economy dipped by 33 percent to $1. 03 billion in the second quarter of 2023 as against the $1.535 billion recorded in Q2 2022, also a nine percent decline when compared to $1.132 billion recorded in Q1 2023.
According to the National Bureau of Statistics (NBS) report, ‘other investment’ topped sources of investment, accounting for 81.28 percent ($837.34 million) of total capital imported in the period. Higher than $435.76 million was recorded in the first quarter.
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This was followed by Portfolio investment which accounted for 10.37 percent, and valued at $106.85 million, a decline from $649.28 million recorded in the first quarter of 2023.
Foreign direct investment (FDI) was 8.35 percent of total investment and valued at $86.03 million, an increase from $47.60 million recorded in the first quarter of 2023.
BusinessDay analysis of the report showed that the production sector recorded the highest inflow with $605.04 million, representing 58.73 percent of total investment, followed by the banking sector, valued at $194.58 million (18.89 percent), and shares which were valued at $68.63 million, representing 6.66 percent of total investment in the period.
“Capital importation during the reference period originated largely from the United States with $271.92 million, accounting for 26.39 percent, followed by Singapore and the Republic of South Africa with $177.44 million (17.22 percent) and $136.95 million (13.29 percent) respectively.”
Lagos State ranked the top investment destination in Q2 2023 with $778.06 million, accounting for 75.52 percent of total capital, followed by Abuja (FCT), with $194.28 million (18.86 percent).
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The report also showed that First Bank of Nigeria Limited received the highest capital into Nigeria in the period, with $323.13 million (18.23 percent), followed by Citibank Nigeria Limited with $187.77 million (12.23 percent) and Rand Merchant Bank with $126.03 (6.47 percent).
