Nigeria’s capital importation declines by 22% in Q2 — NBS

Nigeria’s capital importation in the second quarter of 2024 declined by 22.85% from $3.37 billion in the first quarter of the year to $2.60 billion.

This is according to the National Bureau of Statistics (NBS) Capital Importation report for the second quarter of the year.

However, when compared to the same period of last year, Nigeria’s capital importation rose by 152.8% from $1.03 billion to the current figure.

On the other hand, other claims as foreign capital received just $16 million during the quarter.
For portfolio investments, capital imports into equities represented 10.67% of the total portfolio investment at $149.93 million.

The foreign capital imports into money market instruments stood at $1.07 billion representing 76.6% of total foreign portfolio investment in the second quarter of 2024.

Foreign capital inflow to bonds represented 12.6% of foreign portfolio investment in the period under review at $177.79 million.

However, there was a quarter-on-quarter decline in capital imports into bonds and money market instruments in the period. Foreign capital inflow into bonds declined by 57.75% while that of money market instruments dropped by 32.92% when compared to the first quarter of 2024.

Foreign Direct Investment (FDI) was the lowest type of capital import, contributing $29.83 million (1.15%) in Q2 2024. FDIs have been performing poorly in the past few quarters following an increase in MPR sucking up cash from the real sector of the economy to money market instruments.

According to the report, the banking sector recorded the highest capital inflow in Q2 2024, with US$1.12 billion, accounting for 43.15% of total capital importation. This is consistent with trends in previous quarters.

The banking sector was followed by the Production/Manufacturing sector at US$624.71 million (23.99%) and the Trading sector at US$569.22 million (21.86%).

The majority of capital importation came from the United Kingdom, contributing US$1,120.15 million (43.01%), followed by the Netherlands with US$577.82 million (22.19%) and the Republic of South Africa with US$255.98 million (9.83%).