Capital inflow dips 28% in Q1 2023
By Jeph Ajobaju, Chief Copy Editor
Capital inflow slid 28 per cent to $1.13 billion in the first quarter of 2023 (Q1 2023), according to the latest report by the Nigerian Bureau of Statistics (NBS).
The $1.13 billion is $441 million less than $1.5 billion imported in Q1 2022 but 6.78 per cent more than $1.06 billion in Q4 2022.
Nigeria received more portfolio investment than from any other segment in Q1 2023, accounting for $649 million or 57.32 per cent of total inflow.
Portfolio investment is divided into bonds ($301 million, equity ($222 million), and money markets ($125 million).
Foreign capital also came in via trade credits, loans, currency deposits, and other sectors, the NBS said, per Nairametrics.
Capital inflow by country
United Kingdom – $673 million (59.47 per cent of total)
- United Arab Emirates – $108 million
- United States – $95 million
- South Africa – $91 million
- Singapore – $69 million
Investment destination by state
- Lagos – $704 million (62 per cent of total)
- Federal Capital Territory (FCT) – $410 million
- Akwa Ibom – $5.2 million
- Adamawa – $4.5 million
- Anambra – $4.0 million
__________________________________________________________________
Related articles:
Capital repatriation lifts economy with $1.7b
Improved security raises oil revenue by N363b
TUC says Nigeria doesn’t verify daily oil output
__________________________________________________________________
Capital inflow by sector
- Banking – $304 million (26 per cent)
- Production – $256 million (22.61 per cent)
- IT – $216 million (19 per cent)
- Financial – $118 million
- Trading – $91 million
- Telecom – $22.5 million
- Transport – $12.94 million
- Agriculture – $4.84 million
- Shares – $88 million
- Oil and gas – 0.07 per cent
- Brewery – 0.06 per cent
- Electricals – 0.65 per cent
Nigeria’s economy
They provide recipient countries with funding for accelerated investment, economic growth, and increased consumption.
Nairametrics writes that cross-border capital flows offer significant advantages as they allow for risk diversification and higher investor returns.
Despite reduction in total capital importation, investment across countries, sectors, and banks provide insight into the trends and preferences that shaped Nigeria’s economy in Q1 2023.
Data gives investors, analysts, and the government insight into the lucrative sectors of the economy or how foreign investors think they can get returns.
Foreign investment inflows have slowed in the past few years due to tight capital controls, insecurity, and poor infrastructure that discourage foreign investors.
, according to the Nigerian Bureau of Statistics){kind=link}