Capital inflows into Nigeria declined 28 percent year-on-year in the first quarter of this year to $1.1 billion compared with the same period last year, the Nigerian Bureau of Statistics (NBS) stated on Monday.
In its latest report, however, the NBS noted that inflows to the country rose 6.8 percent in the first three months of this year compared with the figure for the three months to December last year.
The largest capital imports came from portfolio investors, which accounted for 57.3 percent; “other investment” was responsible for 38.31 percent, while foreign direct investment was 4.2 percent.
The United Kingdom accounted for the highest capital importation by country of origin at 59.5 percent, followed by the United Arab Emirates and the US with 9.6 percent and 8.4 percent, respectively, the bureau said.
“By Destination of Investment, Lagos State remained the top destination in Q1 2023 with $704.87 million, accounting for 62.23 percent of total capital investment in Nigeria.
“This was followed by Abuja (FCT), valued at $410.27 million (36.22 percent). The categorization of Capital Importation by Banks shows that Citibank Nigeria Limited ranked top in Q1 2023 with $424.13 million (37.45 percent).
“This was followed by Standard Chartered Bank Nigeria Limited with $360.33 million (31.81 percent) and Stanbic IBTC Bank with $151.85 (13.41 percent),” NBS stated in its latest report.
Foreign investment inflows have slowed in Nigeria in the past few years owing to tight capital controls, rising insecurity, and poor infrastructure that deter external investors.
However, the new government led by President Bola Tinubu has been on a drive to revive the economy and boost inflows.
He has ended a fuel subsidy that cost $10 billion last year, removed a controversial Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, eased foreign exchange controls, and initiated an overhaul of the nation’s chronically inadequate power industry.
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