Would you like to receive notifications on latest updates of the following headlines?

JUST IN: Nigeria recorded $2.60bn in capital importation for Q2 – NBS

POSTED ON October 8, 2024 •   BUSINESS      BY Abiodun Saheed Omodara
National Bureau of Statistics

Nigeria’s capital importation reached $2.60bn in the second quarter of 2024, representing a robust increase of 152.81 per cent year-on-year compared to $1.03bn in Q2 2023.

This is according to the latest capital importation report from the National Bureau of Statistics released on Tuesday.

Despite this substantial annual growth, the figure marks a decline of 22.85 per cent from the $3.38bn recorded in the first quarter of 2024.

The decrease in quarterly figures highlights ongoing fluctuations in investor sentiment, reflecting global economic uncertainties and domestic challenges.

The report read, “In Q2 2024, total capital importation into Nigeria stood at US$2,604.50 million, higher than US$1,030.21 million recorded in Q2 2023, indicating an increase of 152.81%. In comparison to the preceding quarter, capital importation declined by 22.85% from US$3,376.01 million in Q1 2024.”

Portfolio investments emerged as the primary driver of the capital inflows, contributing $1.40bn, or 53.93 per cent of the total.

These investments often involve foreign investors injecting capital into Nigeria’s stocks, bonds, and other financial instruments, aiming for quick returns.

Meanwhile, other investments, which include loans, trade credits, and other forms of debt financing, followed with $1.17bn, accounting for 44.92 per cent of the total inflows.

Foreign Direct Investment (FDI), however, lagged significantly with just $29.83m, making up a mere 1.15 per cent of the total.

This trend points to a persistent challenge for Nigeria in attracting long-term capital that can drive sustainable economic growth and job creation.

The banking sector was the largest beneficiary of capital importation, receiving $1.12bn, representing 43.15 per cent of total inflows in the quarter.

This sector’s dominance highlights the crucial role of banks as conduits for foreign investments, facilitating access to Nigeria’s financial markets.

Following the banking sector, the production/manufacturing sector attracted $624.71m, which constituted 23.99 per cent of the total.

This influx into production and manufacturing suggests a positive outlook for industrial activities, potentially signalling a gradual recovery in Nigeria’s manufacturing capacity.

The trading sector also saw significant capital inflows, amounting to $569.22m (21.86 per cent), reflecting the resilience of trade activities in the country.

On a geographic basis, Lagos State maintained its position as the leading destination for capital importation, attracting $1.37bn, or 52.52 per cent of total inflows.

Lagos remains the commercial hub of Nigeria, offering a strategic entry point for foreign investors due to its robust infrastructure and dynamic business environment.

Abuja (FCT) followed closely, receiving $1.24bn, which accounted for 47.48 per cent of the total.

In contrast, Ekiti State recorded minimal capital inflows, with just $0.0003m during the quarter, indicating the concentration of investment in more established economic centres.

The report also highlighted the sources of these capital inflows. The United Kingdom emerged as the largest contributor, with investments totalling $1.12bn (43.01 per cent) of the overall capital importation, reinforcing its position as a key partner in Nigeria’s financial landscape.

The Netherlands was the second-largest contributor with $577.82m (22.19 per cent), while the Republic of South Africa ranked third with $255.98m (9.83 per cent).

Among banks, Citibank Nigeria Limited led the charge, receiving $818.46m, equivalent to 31.43 per cent of total inflows.

Standard Chartered Bank Nigeria Limited followed with $654.79m (25.14 per cent), while Rand Merchant Bank Plc garnered $488.59m (18.76 per cent).

READ ALSO
Business Owners in Abuja Raise Alarm over Rising Operational Costs and Falling Sales
BY Abiodun Saheed Omodara July 30, 2025 0

Business owners in the Federal Capital Territory have voiced their worries about the escalating cost...

READ ALSO
33 African Startups Cease Operations in 30 Months Amid Shift to Sustainability
BY Abiodun Saheed Omodara July 30, 2025 0

In the last 30 months, from January 2023 to mid-2025, approximately 33 startups in Africa ceased ope...

READ ALSO
Nigerian Financial Institutions Urged to Adopt Real-Time Tools to Combat Rising Fraud
BY Abiodun Saheed Omodara July 30, 2025 0

Financial institutions in Nigeria and throughout Africa have been encouraged to implement real-time...

READ ALSO
NDLEA Conducts Public Auction of Properties Linked to Drug Trafficking
BY Abiodun Saheed Omodara July 30, 2025 0

The National Drug Law Enforcement Agency (NDLEA) held a public auction yesterday for houses that wer...

READ ALSO
FG Plans Re-Privatization of Power Discos Amidst Legislative Changes
BY Abiodun Saheed Omodara July 29, 2025 0

The Federal Government may proceed with the sale of 11 power distribution companies through a re-pri...

READ ALSO
Lagos, Ogun Set for 25-Day Power Outage: Maintenance Work Begins July 28
BY Abiodun Saheed Omodara July 28, 2025 0

Lagos State and some areas of Ogun will undergo a power outage lasting 25 days, beginning on July 28...

READ ALSO
FG Mandates GPS Coordinates for Capital Projects Over N150 Million in 2025
BY Abiodun Saheed Omodara July 25, 2025 0

The Federal Government has required that all Ministries, Departments, and Agencies provide the Globa...

READ ALSO
FG Urges Project Accountants to Prioritize Integrity in Fund Management
BY Abiodun Saheed Omodara July 25, 2025 0

The Federal Government has cautioned project accountants and financial officers to prioritize care a...

OUR CHANNELS:

33 African Startups Cease Operations in 30 Months Amid Shift to Sustainability
BY Abiodun Saheed Omodara July 30, 2025 0

In the last 30 months, from January 2023 to mid-2025, approximately 33 startups in Africa ceased ope...


Nigerian Financial Institutions Urged to Adopt Real-Time Tools to Combat Rising Fraud
BY Abiodun Saheed Omodara July 30, 2025 0

Financial institutions in Nigeria and throughout Africa have been encouraged to implement real-time...


Tragic Attack: Wild Elephants Kill Farmer in Ogun State
BY Abiodun Saheed Omodara July 31, 2025 0

A group of wild elephants from a government-protected forest has attacked and killed a farmer named...


Global Hunger Declines to 8.2% in 2024, Yet Africa and Western Asia See Rising Rates
BY Abiodun Saheed Omodara July 30, 2025 0

The recent report on the State of Food Security and Nutrition in the World reveals that around 8.2 p...


NDLEA Conducts Public Auction of Properties Linked to Drug Trafficking
BY Abiodun Saheed Omodara July 30, 2025 0

The National Drug Law Enforcement Agency (NDLEA) held a public auction yesterday for houses that wer...


FG warns as Ghanaians accuse Nigerians of Ritual Killings
BY Abiodun Saheed Omodara July 30, 2025 0

A group of Ghanaians protested against Nigerians, accusing them of engaging in widespread prostituti...


IGP Egbetokun Addresses Plight of Retired Police Officers
BY Abiodun Saheed Omodara July 30, 2025 0

The Inspector-General of Police, Kayode Egbetokun, stated on Tuesday that many retired police office...


Shettima Highlights Food Sovereignty in Tinubu's Emergency Declaration
BY Abiodun Saheed Omodara July 30, 2025 0

Vice President Kashim Shettima provided insights into the motivations behind President Bola Tinubu&r...


CAC Demands Annual Returns to Avoid Deregistration
BY Abiodun Saheed Omodara July 31, 2025 0

The Corporate Affairs Commission (CAC) has initiated a new round of removing companies that have not...


Oyo State Government Seizes Goods from Unregistered Veterinary Practices
BY Abiodun Saheed Omodara July 30, 2025 0

The Oyo State Government on Tuesday shut down 15 veterinary outlets and seized goods valued in milli...


More Articles

Load more...

Menu