Banking sector leads as capital inflow rises 6% QoQ
By Jeph Ajobaju, Chief Copy Editor
Foreign capital inflow increased from $1.06 billion in the fourth quarter of 2022 (Q4 2022) to $1.13 billion in the first quarter of 2023 (Q1 2023), a rise of 6.78 per cent
The latest National Bureau of Statistics (NBS) data shows the largest inflow was from Portfolio Investments, which accounted for 57.3 per cent ($649.28 million) of the total.
The banking sector had the highest inflow of $304.56 million or 26.9 per cent of total capital import in Q1 2023.
Portfolio Investment tops with 57%
“Total capital importation into Nigeria in Q1’23 stood at $1.13 billion, lower than $1.57 billion recorded in Q1’22, indicating a decrease of 28 percent,” the NBS said, per Vanguard.
“When compared to the preceding quarter, capital importation rose by 6.78 percent from $1.06 million in Q4’22.
“The largest capital importation during the period was received from Portfolio Investment, which accounted for 57.3 percent ($649.28 million) of total capital imported in Q1’23.
“This was followed by Other Investment with 38.3 percent ($435.76 million) and Foreign Direct Investment (FDI) with 4.2 percent ($47.6 million).
“Disaggregated by Sectors, capital importation into the banking sector recorded the highest inflow of $304.56 million, representing 26.9 percent of total capital imported in Q1’23.
“This was followed by capital imported into the production sector, valued at $256.12 million (22.6 percent), and IT Services with $216.06 million (19.08 percent).”
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Lagos tops investment destination
“Capital Importation by Country of Origin reveals that capital from the United Kingdom ranked top in Q1’23 with $673.64 million, accounting for 59.47 percent.
“This was followed by the United Arab Emirates and the United States valued at $108.28 million (9.56 percent) and $95.36 million (8.42 percent) respectively.
“By Destination of Investment, Lagos State remained the top destination in Q1 2023 with $704.87 million, accounting for 62.2 percent of total capital investment in Nigeria. This was followed by Abuja (FCT), valued at $410.27 million (36.2 percent).
“Categorisation of Capital Importation by Banks shows that Citibank Nigeria Limited ranked top in Q1’23 with $424.13 million (37.45 percent).
“This was followed by Standard Chartered Bank Nigeria Limited with $360.33 million (31.8 percent) and Stanbic IBTC Bank with $151.85 million (13.41 percent).”