Despite the slight improvement in foreign capital inflows through foreign direct investment (FDI) in the third quarter of 2024, Nigeria’s capital importation fell by 51.90 per cent to $1.25 billion from $2.60 billion recorded in the second quarter (Q2) of 2024.

Capital importation is the inflow of funds from abroad to support investment, trade, and manufacturing within a country.

The National Bureau of Statistics (NBS) reports that there was a slight improvement in capital inflows through FDI, which grew from $29.83 million, or 1.15 per cent of total capital importation in the second quarter of 2024, to $103.82 million, or 8.29 per cent of the total capital importation in the third quarter.

The NBS reports that although the total capital importation into Nigeria in Q3 2024 stood at $1,252.66 million, it is higher than the $654.65 million recorded in Q3 2023, indicating an increase of 91.35 per cent.

It said that foreign portfolio investments (FPI) ranked top with $899.31 million, accounting for 71.79 per cent of capital importation, followed by other investments with $249.53 million, accounting for 19.92 per cent.

The report further said the banking sector recorded the highest capital inflow in the reviewed period, followed by financing and manufacturing.

“The banking sector recorded the highest with $579.48 million, representing 46.26 per cent of total capital imported in Q3 2024, followed by the financing sector, valued at $294.55 million or 23.51 per cent, and the production/manufacturing sector with $189.22 million, about 15.11 per cent,” NBS said.

It said capital importation during the reference period originated largely from the United Kingdom with $502.60 million, representing 40.12 per cent of the total capital imported, followed by the Republic of South Africa with $185.03 million, or 14.77 per cent, and the United States with $163.86 million, or 13.08 per cent.

Lagos state retained the top destination for foreign capital among states with $650.41 million, accounting for 51.92 per cent of the total capital imported.

Next on the list is Abuja (FCT) with $600.02 million, or 47.90 per cent, and Kaduna state with $1.95 million, or 0.16 percent, while Enugu and Ekiti states recorded $184.22 million and $96.60 million, respectively.

NBS said Stanbic Chartered Bank received the highest capital importation by banks, recording $385.62 million (30.78 per cent) during the reviewed period, followed by Stanbic IBTC Bank Plc with $382.08 million (30.50 per cent) and Citibank Nigeria Limited with $192.88 million (15.40 per cent).