Nigeria witnessed a decline in total capital importation, dropping to $1.03 billion from $1.5 billion in Q2 2022, marking a 32.90 per cent decrease, according to the National Bureau of Statistics.
The NBS’ report also revealed a 9.04 per cent decrease from the $1.13 billion recorded in Q1.
Capital importation means all the money or investment from foreign countries into Nigeria’s economy.
It involves the inflow of funds for investment, trade or business expansion.
According to the Bureau, investment ranked top accounting for 81.28 per cent ($837.34 million) of total capital importation in Q2 2023, followed by portfolio investment with 10.37 per cent ($106.85 million) and foreign direct investment with 8.35 per cent ($86.03 million).
Meanwhile, the production sector recorded the highest inflow with $605.04 million, representing 58.73 per cent of total capital imported in Q2 2023, followed by the banking sector, valued at $194.58 million (18.89 per cent), and shares with $68.63 million (6.66 per cent).
The NBS also revealed that “capital importation during the reference period originated largely from the United States with $271.92 million, accounting for 26.39 per cent, followed by Singapore and the Republic of South Africa with $177.44 million (17.22 per cent) and $136.95 million (13.29 per cent)” respectively.
Furthermore, the report stated that Lagos State remained the top destination in Q2 2023 with $778.06 million, accounting for 75.52 per cent of total capital, followed by Abuja with $194.28 million (18.86 per cent).
“First Bank of Nigeria Limited received the highest capital into Nigeria in Q2 2023 with $323.13 million (18.23 per cent), followed by Citibank Nigeria Limited with $187.77 million (12.23 per cent) and Rand Merchant Bank with $126.03 million (6.47 per cent),” the report added.
