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The urgency to enhance capital inflow into Nigeria, the largest economy in Africa, is more crucial now than ever. The Nigerian economy has been facing increased challenges lately, dealing with issues like inflation, unemployment, and a shortage of foreign exchange.
The Nigeria Capital Importation Report” by the National Bureau of Statistics showed that in the 4th quarter of 2023, the total capital importation that flowed into Nigeria’s economy was US$1,088.48 million.
The recorded figure for this period surpassed the amount reported in the same timeframe the previous year, reaching US$1,090.36 million, a 2.62% increase from Q4 2022 to Q4 2023.
In comparison to the preceding quarter of 2023, capital importation in Q4 experienced a substantial rise, surging by 66.27% from US$654.65 million in Q3 2023.
The production/manufacturing sector recorded the highest inflow with US$450.11 million, representing 41.35% of total capital imported in Q4 2023, followed by the banking sector, valued at US$283.30 million (26.03%), and financing with US$135.59 million (12.46%)
During the reference period, the majority of capital importation originated from the United Kingdom, contributing US$267.24 million and holding a share of 24.55%. Following closely were Mauritius with US$226.18 million (20.78%) and the Netherlands with US$149.93 million (13.77%).
Nigerian banks play a crucial role in attracting foreign capital importation into the country, serving as key intermediaries in the financial landscape. These financial institutions employ various strategies like offering different financial products and maintaining a stable banking sector, to appeal to foreign investors.
According to the NBS, Stanbic IBTC, Citibank, and Rand Merchant emerged as the top choices for foreign investment in Nigeria in Q4 2023.
| Rank | Bank | Cap Importation |
|---|---|---|
| 1 | Stanbic IBTC | $499.45m |
| 2 | Citibank | $299.06m |
| 3 | Rand Merchant | $85.85m |
| 4 | First Bank | $57.97m |
| 5 | Zenith Bank | $51.42m |
| 6 | Ecobank | $48.52m |
| 7 | Access Bank | $36.7m |
| 8 | NOVA Bank | $33.5m |
| 9 | Standard Chartered | $14.4m |
| 10 | Union Bank | $10.0m |
