NBS: Capital Importation Declined by 9.04% to $1.03bn in Q2 2023

James Emejo in Abuja

Nigeria’s total capital importation dropped by 9.04 per cent to $1.03 billion in the second quarter of this year (Q2 2023) compared to $1.13 billion in the preceding quarter, the National Bureau of Statistics (NBS) said yesterday.
Capital importation also fell short of the $1.53 billion recorded in Q2 2022 by 32.90 per cent.
Other Investment types accounted for 81.28 per cent or $837.34 million of total capital importation in the review period followed by portfolio investment which accounted for $106.85 million or 10.37 per cent of capital inflows.

Foreign Direct Investment (FDI) represented $86.03 million or 8.35 per cent of the total receipt.
According to the Nigeria Capital Importation Q2 2023 report, which was released by the statistical agency, the production sector recorded the highest inflow with $605.04 million, representing 58.73 per cent of total capital imported.

This was followed by the banking sector, which recorded $194.58 million or 18.89 per cent, as well as shares which accounted for $68.63 million or 6.66 per cent.
Also, the United States accounted for the largest source of inflows with $271.92 million, accounting for 26.39 per cent, followed by Singapore and the Republic of South Africa with $177.44 million or 17.22 per cent and $136.95 million or 13.29 per cent respectively.
However, Lagos State remained the top destination for capital inflows in Q2 with $778.06 million, accounting for 75.52 per cent followed by Abuja (FCT), $194.28 million or 18.86 per cent.

First Bank of Nigeria Limited received the highest capital into the country accounting for $323.13 million or 18.23 per cent followed by Citibank Nigeria Limited $187.77 million or 12.23 per cent and Rand Merchant Bank which accounted for $126.03 or 6.47 per cent.
In the previous quarter, total capital importation had increased by 6.78 per cent to $1.13 billion compared to $1.06 billion in Q4 2022.
This, however, represented a 28 per cent decline when compared with the $1.57 billion recorded in Q1 2022.
The largest capital importation during the period was received from portfolio investment, which accounted for $649.28 million, representing 57.32 per cent of total capital imported.

This was followed by other investments which accounted for $435.76 million or 38.31 per cent of total inflows, as well as Foreign Direct Investment (FDI) which contributed $47.60 million or 4.20 per cent to capital importation.
The banking sector recorded the highest inflow of $304.56 million, representing 26.89 per cent of total capital imported during the period.
This was followed by capital imported into the production sector, which was valued at $256.12 million or 22.61 per cent, as well as IT Services which attracted inflows worth $216.06 million or 19.08 per cent.

Capital importation by country of origin further revealed that the United Kingdom ranked top with $673.64 million, accounting for 59.47 per cent of total inflows.
This was followed by the United Arab Emirates and the United States which accounted for $108.28 million or 9.56 per cent and $95.36 million or 8.42 per cent, respectively.

Meanwhile, Lagos State topped the destination for investors, accounting for $704.87 million or 62.23 per cent of total capital investment in the country.
This was followed by Abuja (FCT), valued at $410.27 million or 36.22 per cent.
Anambra, Akwa Ibom, and Adamawa had the lowest capital inflows of $4 million, $5.21 million, and $4.50 million, respectively.
Capital Importation by banks showed that Citibank Nigeria Limited ranked top with $424.13 million or 37.45 per cent followed by Standard Chartered Bank Nigeria Limited with $360.33 million or 31.81 per cent and Stanbic IBTC Bank with $151.85 or 13.41 per cent.

In addition, shares accounted for $88.51 per cent or 7.81 per cent of total inflows while agriculture attracted $4.84 per cent or 0.43 per cent, as well as transport which accounted for $12.94 million or 1.14 per cent of inflows during the period.