Nigeria experienced a significant 36.45% decline in total capital importation, dropping to $654.65 million in the third quarter of 2023 from $1,030.21 million in the preceding quarter, as reported by the National Bureau of Statistics (NBS). This downward trend amounted to a drastic 43.55% decrease compared to the same period in 2022, signaling a notable shift in the country’s investment landscape.
The latest data from NBS showcased a clear breakdown of capital importation in Q3 2023, with other investments leading the way, constituting 77.56% ($507.77 million) of the total, followed by portfolio investment at 13.31% ($87.11 million), and Foreign Direct Investment (FDI) at 9.13% ($59.77 million). These figures offer a comprehensive insight into the diverse forms of investments flowing into Nigeria during this period.
Examining the specific sectors that attracted capital importation, the production/manufacturing sector emerged as the top recipient, drawing in $279.51 million, which accounted for a significant 42.70% of the total capital imported in Q3 2023. Notably, the finance sector followed closely at $127.93 million (19.54%), while shares garnered $85.49 million (13.06%), illustrating the nuanced distribution of investments across various industries.
In terms of geographical preference for capital importation, Lagos state stood out as the predominant destination, receiving $308.83 million, which represented 47.18% of the total capital importation in the third quarter of 2023. Following Lagos, Abuja (FCT) attracted $194.66 million (29.73%), while Abia State witnessed $150.09 million (22.93%) in capital importation, underscoring the concentration of investments in key regions of Nigeria.
Reflecting on the origins of capital importation, the Netherlands played a pivotal role, contributing $175.62 million and securing a noteworthy 26.83% share. Singapore followed closely with $79.15 million (12.09%), and the United States with $67.04 million (10.24%), indicating a diverse set of countries actively participating in funding Nigeria’s economic activities during this period.
The decline in capital importation depicted in the Q3 2023 data underscores the evolving investment landscape in Nigeria, necessitating a nuanced approach to attract and sustain foreign investments in the country’s diverse sectors. As Nigeria navigates this shifting terrain, stakeholders and policymakers must closely monitor these trends to devise strategic measures that bolster the investment climate and propel sustainable economic growth.
