Boosted by African Investors, Foreign Capital Inflows Soars 261.33% YoY 

Arthur Eriye

Recent data released by the National Bureau of Statistics (NBS), has revealed that African investors, excluding Nigerians, accounted for 22.76 per cent of Nigeria’s foreign capital inflows in Q3 2024, contributing $285.11 million. This marks a significant role for African countries in Nigeria’s capital importation landscape, though it reflects a decline of 43.73 per cent from $506.68 million in Q2 2024 and a 16.77 per cent drop compared to $342.55 million in Q3 2023.

According to the Bureau, Nigerian investors showed remarkable growth, with foreign capital inflows rising to $10.84 million, a 261.33 per cent year-on-year increase from $3.00 million in Q3 2023 and a 198.63 per cent surge from $3.63 million in Q2 2024.

Mauritius and South Africa emerged the highest African contributors, though their performances diverged. Mauritius brought in $97.63 million, a steep fall of 61.05 per cent from the previous quarter’s $250.70 million and a 56.85% decline year-on-year. Meanwhile, South Africa contributed $185.03 million, showing a 59.02 per cent increase compared to $116.37 million in Q3 2023 but a 27.73 per cent decline from $255.98 million in Q2 2024. Ghana emerged with $2.35 million, signaling renewed interest, while Morocco remained a minor player with $0.10 million.

Africa’s performance was dwarfed by significant contributions from Europe, North America, and Asia. Europe maintained its dominance, with significant contribution of $502.60 million by the United Kingdom, despite a drop from $1.12 billion in Q2 2024, and the Netherlands, which added $121.92 million. North America also recorded gains, with the United States increasing its contribution to $163.86 million, up from $81.58 million in Q2 2024. Meanwhile, Asia saw notable inflows from Saudi Arabia at $28.01 million, China at $9.58 million, and Singapore at $5.63 million, though all experienced declines compared to the previous quarter.

Generally, Nigeria’s total foreign capital inflow in Q3 2024 fell sharply to $1.25 billion, a 51.89 per cent decrease from $2.60 billion in Q2 2024, despite an annual increase of 91.35 per cent. Africa’s reduced inflows, particularly from Mauritius and South Africa, dampened its contribution, while Europe and North America solidified their positions as dominant sources. The increase in contributions from Nigerian investors is pointer to the growing confidence and, potential shift in Nigeria’s capital inflow streams