• Lagos, Abuja account for 98.5% of inflows
The general elections, which were held in the first quarter of 2023, and the uncertainty that came with them might have been responsible for the 28 per cent quarter-on-quarter (Q/Q) drop in the capital flow into the country in the first three months of the year.
The total capital imported into Nigeria in Q1 stood at $1.13 billion, which was 28 per cent lower than $1.57 billion recorded in Q1 2022. However, when compared to the preceding quarter, the inflow rose by 6.78 per cent, from $1.06 billion in Q4 2022.
The National Bureau of Statistics (NBS), in its Q1 2023 capital importation report, said the bulk of the capital came in through portfolio investment, which accounted for 57.32 per cent or $649.28 million.
Other investments recorded 38.31 per cent ($435.76 million), while foreign direct investment (FDI) had 4.2 per cent, translating to $47.6 million.
When disaggregated by sectors, capital importation into the banking sector recorded the highest inflow of $304.56 million, representing 26.89 per cent of total value. This was followed by the production sector with a value of $256.12 million or 22.61 per cent.
Information technology (IT) services pooled $216.06 million, representing 19.08 per cent. In terms of country of origin, the United Kingdom topped in Q1 with $673.64 million or 59.47 per cent. This was followed by the United Arab Emirates and the United States with $108.28 million (9.56 per cent) and $95.36 million (8.42 per cent) respectively.
Inflow from South Africa and Singapore were valued at $91.14 billion and $69.84 respectively. The report read: “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. This was followed by Abuja (FCT), valued at $410.27 million, representing 36.22 per cent.”
While Lagos and Abuja account for 98.45 per cent of the inflow, 28 states recorded zero capital inflow. Only eight states plus Abuja pooled the total capital importation. The states are Adamawa, Akwa Ibom, Anambra, Ekiti, Lagos, Niger, Ogun, Ondo and FCT.
Akwa Ibom State received $5.21 billion, while Adamawa State got $4.5 billion just as $4 billion flowed to Anambra State.
“Categorisation of Capital Importation by Banks shows that Citibank Nigeria Limited ranked top in Q1 2023 with $424.13 million, accounting for 37.45 per cent, followed by Standard Chartered Bank Nigeria Limited with $360.33 million, representing 31.81 percent and Stanbic IBTC Bank with $151.85, representing 13.41 per cent,” the report said.
