The National Bureau of Statistics (NBS) has revealed that African investors (excluding those from Nigeria) contributed 22.76% of the total foreign capital imported into Nigeria in the third quarter of 2024.
This amounted to $285.11 million, showing a significant role played by African countries in the capital importation landscape.
However, an analysis of the capital importation report of the NBS highlighted a decline in Africa’s overall contribution when compared to both the second quarter of 2024 and the same period last year.
What the data says
The NBS data indicates that the total capital contribution from Africa in Q3 2024 amounted to $285.11 million. This figure highlights a 43.73% decline when compared to Q2 2024, which recorded $506.68 million. On a year-on-year basis, Africa’s contribution also fell by 16.77% from $342.55 million in Q3 2023.
Among the key African contributors in Q3 2024 were Mauritius, the Republic of South Africa, Ghana, and Morocco.
- Mauritius remained a significant source of foreign capital with an inflow of $97.63 million, though this reflected a sharp decline of 61.05% from the $250.70 million recorded in Q2 2024. Year-on-year, the drop was even steeper, with Mauritius contributing $226.18 million in Q3 2023, marking a 56.85% decline.
- The Republic of South Africa contributed $185.03 million in Q3 2024. This figure represented a substantial year-on-year growth of 59.02% compared to $116.37 million in Q3 2023. However, on a quarter-on-quarter basis, South Africa’s contribution fell by 27.73% from the $255.98 million recorded in Q2 2024.
- Ghana made a notable appearance in Nigeria’s foreign capital report for the first time in recent quarters, with a contribution of $2.35 million in Q3 2024. This inflow, albeit relatively small, signals a renewed interest from Ghanaian investors. Morocco also emerged as a minor contributor, recording $0.10 million in capital inflows during the period.
In contrast to the declining trends from other African countries, foreign capital inflow from Nigerian investors showed significant growth. The country contributed $10.84 million to its foreign capital inflows in Q3 2024, reflecting a remarkable increase of 261.33% year-on-year from $3.00 million in Q3 2023. On a quarter-on-quarter basis, the foreign capital inflow from Nigerian investors surged by 198.63% from $3.63 million recorded in Q2 2024.
Contributions from other continents
While Africa accounted for 22.76% of Nigeria’s total capital inflow, the report highlighted significant contributions from other continents, particularly Europe, North America, and Asia. Europe remained the largest contributor to Nigeria’s foreign capital, driven by inflows from the United Kingdom and the Netherlands.
- The United Kingdom maintained its dominance with $502.60 million in Q3 2024, though this marked a significant decline from $1.12 billion recorded in Q2 2024.
- The Netherlands also featured prominently, contributing $121.92 million in Q3 2024. However, this was a sharp drop from $577.82 million in Q2 2024, reflecting cautious investment trends.
- From North America, the United States showed consistent growth, recording $163.86 million in Q3 2024, up from $81.58 million in Q2 2024. This reflects increased investor confidence from the United States despite global economic uncertainties.
- While African inflows declined, contributions from Asian countries were more notable in Q3 2024, particularly from Saudi Arabia, China, and Singapore. Saudi Arabia emerged as a strong contributor with $28.01 million, though this marked a 48.65% decline from $54.55 million in Q2 2024.
China’s inflows stood at $9.58 million in Q3 2024, slightly down from $10.63 million in Q2 2024, reflecting a 9.88% decline quarter-on-quarter. Singapore, which contributed $5.63 million, also saw a notable drop from its Q2 2024 inflow of $13.49 million, translating to a 58.26% decline.
What you should know
The NBS report highlights a decline in overall foreign capital inflow into Nigeria in Q3 2024, which totaled $1.25 billion, representing a 51.89% drop from the $2.60 billion recorded in Q2 2024. This drop highlights a sharp contraction in foreign investments despite an overall annual increase of 91.35% from Q3 2023.
- While Africa’s contribution remains significant, the reduced inflows from Mauritius and South Africa have impacted the continent’s share.
- On the other hand, the steady performance from Europe and North America underlines their continued role as dominant contributors to Nigeria’s foreign capital inflows.
The sharp increase in contributions from Nigerian investors also reflects renewed investor confidence within Nigeria, signaling a potential shift in the country’s capital dynamics.
