Nigeria’s capital importation has crashed by 43.55% in the third quarter of 2023, defying efforts by the current administration of President Bola Tinubu to attract investments into the country.
The $654.65 million recorded in Q3 2023 is a significant decrease from the $1.16 billion in the same quarter of the previous year.
Quarterly, there was a decrease of 36.45% from $1.03 billion in the previous quarter of the same year.
This is according to the latest capital importation report from the National Bureau of Statistics.
Investment by type and sector
- In Q3 2023, Other Investment accounted for 77.56% ($507.77 million) of all capital importation, followed by Portfolio Investment ($87.11 million or 13.31%) and Foreign Direct Investment (FDI) with $59.77 million or 9.13%.
- Also, the production/manufacturing sector received the most, amounting to $279.51 million (or 42.70% of the total capital imported), and the financing sector received the second-highest inflow of $127.93 million (19.54%), Shares accounted for the remaining $85.49 million (13.16%).
Origin of foreign capital
- Capital imports during the period under review were primarily sourced from the Netherlands, accounting for 26.83% market share, which was about $175.62 million.
- Subsequently, Singapore contributed $79.15 million (12.09%), while the United States contributed $67.04 million (10.24%).
Investment by states
- Lagos state maintained its position as the leading recipient of capital as it received $308.83 million, representing 47.18% of the total capital importation.
- Abuja (FCT) followed with $194.66 million (29.73%), and Abia state contributed $150.09 million (22.93%).
Capital imports by banks
- In Q3 2023, Stanbic IBTC Bank Plc received the most capital importation into Nigeria ($222.84
- million or 34.04%), followed by Citibank Nigeria Limited ($190.03 million or 29.03%) and Zenith Bank Plc ($83.04 million or 12.68%).
More Insight
Tinubu has travelled to at least 10 different nations during his first half of the year in office. In addition to the United Kingdom, Kenya, the Benin Republic, and India, he travelled to France and Guinea-Bissau twice each.
His massive entourage during his September visit to the United Nations General Assembly in New York City and the recent COP28 trip in Dubai caused a stir.
President Tinubu repeatedly reassured potential investors to come to invest in Nigeria during his foreign trips to various countries. It would appear that investors are still hesitant to invest in the country, despite Tinubu’s attempts to attract them.
Tinubu’s overseas trips, according to Federal Minister of Information and National Orientation Mohammed Idris, have resulted in over $15 billion in Foreign Direct Investment (FDI) pledges across different economic sectors.
- According to Idris, President Tinubu’s engagements have demonstrated Nigeria’s dedication to becoming a responsible and cooperative member of the global community and have brought attention to the country’s potential.
- “We have seen over $15 billion in Foreign Direct Investment (FDI) pledges in various sectors such as energy, steel, defence, and the automotive,” Idris said.
- The minister also mentioned that a major pharmaceutical company from Japan has started building a multi-million-dollar manufacturing unit in Ogun State, which is just one of several investors that have pledged money.
- However, it appears that investors are yet to fulfil these pledges as foreign investments have been on a decline in the country, defying efforts made by the current administration through several foreign trips and appeals.
