Capital Flow To Nigeria Drops To $1.132bn In Q1

Total capital importation into Nigeria in Q1 2023 stood at $1,132.65 billion, lower than $1,573.14 billion recorded in Q1 2022, indicating a decrease of 28 per cent, according to data from the statistics bureau. When compared to the preceding quarter, capital importation rose by 6.78 percent from $1,060.73 billion in the fourth quarter of 2022.

Portfolio Investment accounted for the largest capital importation during the period, accounting for 57.32 per cent ($649.28 million) of total capital imported in Q1 2023, according to the data by the National Bureau of Statistics (NBS).

This was followed by other investment with 38.31 per cent ($435.76 million) and Foreign Direct Investment (FDI) with 4.201 per cent ($47.60 million).

Disaggregated by sectors, capital importation into the banking sector recorded the highest inflow of $304.56 million, representing 26.89 percent of total capital imported in the first quarter of 2023. The banking industry was trailed by production sector, valued at $256.12 million (22.61 per cent), and IT services with $216.06 million or 19.08 per cent.

By country of origin, capital importation into Nigeria showed that capital from the United Kingdom ranked top in Q1 2023 with $673.64 million, accounting for 59.47 per cent, followed by the United Arab Emirates and the United States of America valued at $108.28 million (9.56 per cent) and $95.36 million (8.42 per cent) respectively.

By destination of investment, Lagos State remained the top destination in Q1 2023 with $704.87 million, accounting for 62.23 per cent of total capital investment in Nigeria.

The Federal Capital Territory, Abuja came second most valued destination for investment at $410.27 million (36.22 per cent).

The NBS says by categorization of capital importation by banks shows that Citibank Nigeria Limited ranked top in Q1 2023 with $424.13 million (37.45 per cent). This was followed by Standard Chartered Bank Nigeria Limited with $360.33 million (31.81 per cent) and Stanbic IBTC Bank with $151.85 million (13.41 per cent).