Nigeria recorded a significant rise of 26.61 billion in capital importation in the fourth quarter (Q4) of last year.

That figure was largely driven by foreign portfolio investments (FPI), which contributed $5.5 billion or 85.14 per cent of the total capital inflow.

The fourth quarter foreign capital inflows are higher than the $5.1 billion recorded in Q4, indicating an increase of 26.61 per cent on a year-on-year basis.

In comparison to the preceding quarter, capital importation increased by 7.13 per cent to $6 billion.

The National Bureau of Statistics (NBS) in its Q4 Nigeria’s capital importation report released yesterday said the second largest contributor was other investment with $599.65 million or 9.31 per cent. While foreign direct investment (FDI), which the country seriously needs mostly, brought in $357.8 million or 5.55 per cent of the total inflows.

The banking sector recorded the highest inflow at $3.9 billion, representing 59.75 per cent of total capital, followed by the financing sector, valued at $1.9 billion or 30.15 per cent. The production/manufacturing sector had $308.93 million or 4.79 per cent.

Telecommunications, agriculture and oil and gas recorded significantly lower inflows, showing the concentration of foreign capital in financial services. This suggests that investors continue to favour liquid and financial assets over real sector investments.

The report also showed that money market instruments accounted for a significant share of portfolio inflows at $3.08 billion, while bonds contributed $1.97 billion, reflecting continued investor preference for short-term and fixed-income instruments.

The NBS reported that capital importation during the reference period originated largely from the United Kingdom, which sent $3.73 billion or 57.94 per cent of the total capital.

This was followed by the United States at $837.91 million or 13 per cent and South Africa at $516.96 million, 8.02 per cent. Belgium and Mauritius also featured among the top contributors, reflecting Nigeria’s continued reliance on traditional financial hubs for foreign capital.

Stanbic IBTC Bank Plc received the highest value at $2.22 billion or 34.58 per cent, followed by Standard Chartered Bank Nigeria Ltd ($1.85 billion) and Citibank Nigeria Ltd at $840.72 million.

Access Bank, Rand Merchant Bank, and First City Monument Bank recorded moderate inflows.