Foreign Capital Importation Declined to $5.32bn in 2022, $1.06bn in Q4

•Lagos accounted for $3.61bn, FCT $1.62bn 

•Despite frequent foreign business trips, 27 states failed to attract any inflows

James Emejo in Abuja

Total capital importation into the country dropped by 20.47 per cent to $5.32 billion in 2022 compared to $6.70 billion in the preceding year, the National Bureau of Statistics (NBS) disclosed yesterday.

Capital inflows also dropped by 8.53 per cent to $1.06 billion in the fourth quarter of last year (Q4 2022) compared to $1.15 billion in the preceding quarter.

According to the Nigeria Capital Importation Q4 2022 report which was obtained from the NBS website, when compared to the $2.18 billion attracted in the corresponding quarter of 2021, capital importation also fell by 51.51 per cent.

The report further showed that on annual basis, Lagos accounted for $3.61 billion of total inflows while the Federal Capital Territory (FCT) attracted $1.62 billion.

In effect, only nine states attracted any form of foreign capital into the country in 2022.

Others included Akwa Ibom $42.52 million, Anambra $36.97 million, Ekiti $0.51 million, Katsina $0.70 million, Kogi $2 million, Ondo $0.20 million, Oyo $3 million, and Plateau $0.04 million.

Further analysis of the report revealed that 27 states failed to attract any dollar as foreign capital inflow throughout the year despite the penchant of state chief executives to travel abroad in search of foreign investors.

The states included Abia, Adamawa, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, and Edo.

Others are Gombe, Imo, Jigawa, Kaduna, Kano, Kebbi, and Kwara.

Others were Nasarawa, Niger, Ogun, Osun, Rivers, Sokoto, Taraba, Yobe, Zamfara, and Enugu.

However, the largest capital inflow for Q4 was received from the other investment type which accounted for $691.23 million or 65.17 per cent of inflows during the review period.

This was followed by portfolio investment which amounted to $285.26 million or 26.89 per cent as well as Foreign Direct Investment (FDI) which stood at $84.23 million or 7.94 per cent of total receipts.

Similarly, when disaggregated by sectors, capital importation into the production sector recorded the highest inflow of $392.54 million, representing 37.01 per cent of total capital imported in Q4.

According to the statistical agency, this was followed by capital imported into the banking sector, valued at $255.45 million, representing 24.08 per cent, and telecoms with $168.27 million or 15.86 per cent.

The United Kingdom (UK) ranked top with $455.24 million, accounting for 42.92 per cent of total inflows in the review period while the Republic of South Africa and the United Arab Emirates accounted for $119.31 million or 11.25 per cent and $116.82 million or 11.01 per cent respectively.

However, by destination of investment, Lagos State maintained the top spot with $600.54 million, accounting for 56.62 per cent of total capital investment in the country while the Federal Capital Territory (FCT) attracted $424.50 million representing 40.02 per cent of inflows.

Meanwhile, capital importation by banks showed that Citibank Nigeria Limited ranked top with $308.72 million (29.10 per cent), Standard Chartered Bank Nigeria Limited accounted for $232.45 million (21.91 per cent) and Rand Merchant Bank with $102.00 (9.62 per cent).