Sunday, February 25, 2024

Nigeria’s capital import drops 28% to $1.57bn

Uba Group

BY BAMIDELE FAMOOFO

The total value of capital importation into Nigeria in the first quarter of 2022 stood at $1.57 billion from $2.19 billion in the preceding quarter showing a decrease of 28.09 percent.

When compared to the corresponding quarter of 2021, capital importation decreased by 17.46 percent from $1.91 billion.

The largest amount of capital importation by type was received through Portfolio Investment, which accounted for 60.87 percent ($957.58 million). This was followed by Other Investment with 29.28 percent ($460.59 million) and Foreign Direct Investment (FDI) accounted for 9.85 percent ($154.97 million) of total capital imported in Q1 2022.

Disaggregated by Sectors, capital importation into banking had the highest inflow of $818.84 million amounting for 52.05 percent of total capital imported in the first quarter of 2022. This was followed by capital imported into the production sector, valued at $223.67 million (14.22%) and the financing sector with $199.37 million (12.67%)

Capital Importation by Country of Origin reveals that United Kingdom ranked top as the source of capital imported into Nigeria in the first quarter of 2022 with a value of $1.021.21 million, accounting for 64.92 percent. This was followed by the Republic of South Africa and the United States of America valued at $117.50 million (7.47%) and $82.07 million (5.22%) respectively.

By Destination of Investment, Lagos state remained the top destination in Q1 2022 with $1.12 billion accounting for 71.16 percent of total capital investment into Nigeria. This was followed by investment into Abuja (FCT), valued at $446.81 million (28.40%).

Categorization of total capital investment by Bank shows that Standard Chartered Bank Nigeria ranked highest in Q1 2022 with $543.20 million (34.53%). This was followed by Citi Bank Nigeria Limited with $439.03 million (27.91%) and Stanbic IBTC Bank Plc with $251.52
(15.99%).

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