Naira Loses 69%, Closes 2024 Weaker At N1,535/$1

The value of the naira closed the year 2024 weaker than it opened the year with as the Central Bank of Nigeria (CBN) said capital inflow into the country rose to $1.89 billion in the month of October.

From N907 to the dollar which it closed at the official end of the foreign exchange market and N1,215 which it closed at the black market, the value of the naira had seen a 69.2 and 36.2 per cent depreciation respectively.

At the close of business on Tuesday, the last day in the year 2024, the value of the naira on the official end of the market stood at N1,535 to the dollar while it sold at N1,655 to the dollar at the parallel market.

Meanwhile, the CBN in its Economic report for October 2024 released on its website said capital inflow significantly increased to $1.89 billion, from $0.40 billion recorded in September 2024.

According to the apex bank, the increase in capital inflow was mainly driven by increased portfolio investments in both equity and money market instruments. A breakdown showed that portfolio investment inflow increased significantly by 403.57 per cent to $1.41 billion, from $0.28 billion due to higher purchases in equity and money market instruments.

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Similarly, foreign direct investment increased by 350.00 per cent in October to $0.18 billion from $0.04 billion in September 2024. Other investments in the form of loans also increased by 275.00 per cent to $0.30 billion, from $0.08 billion in the preceding month.

In terms of share, portfolio investment inflow constituted 74.65 per cent, while ‘other investment’ and direct investment accounted for 15.80 and 9.55 per cent, respectively.

Analysis of capital importation by sector indicated that the banking sector accounted for 49.21 per cent of total inflow. This was followed by the financing sector with 26.12 per cent, production and manufacturing sector with 9.72 per cent, brewing with 5.55 per cent telecommunication with 4.65 per cent, construction with 3.39 per cent, and shares with 0.73 per cent while other sectors accounted for the balance.

Capital inflow by originating country showed that the UK was the major source of capital, accounting for 54.80 per cent of the total. This was followed by the United States of America which accounted for 13.89 per cent, Netherlands with 8.88 per cent, South Africa with 8.12 per cent, Singapore with 4.30 per cent and Mauritius which accounted for 3.10 per cent. Other countries accounted for the balance.