- Manufacturing Sector Takes Lead
CEM REPORT, ECONOMY | Nigeria’s economy received a welcome boost in the final quarter of 2023, as total capital importation surged by 66.27% compared to the previous quarter, reaching $1.09 billion. This represents a modest year-on-year increase of 2.62% compared to Q4 2022’s $1.06 billion.
Other Investments Lead the Charge
The data, released by the National Bureau of Statistics (NBS), reveals Other Investments as the key driver, contributing 54.64% ($594.74 million) to the total inflow. These include loans and other financial instruments. Portfolio Investments followed with a significant 28.46% ($309.76 million), while Foreign Direct Investment (FDI) accounted for 16.90% ($183.97 million).
Manufacturing Sector Attracts Major Capital InFlow
Manufacturing emerged as the most attractive sector for investors, receiving a whopping $450.11 million (41.35%) of the total capital inflow. This signals growing confidence in Nigeria’s industrial potential. The banking sector closely followed with $283.30 million (26.03%), highlighting the continued importance of financial services.
United Kingdom Tops Investor Source List
The United Kingdom remained the leading source of capital, contributing $267.24 million (24.55%). Mauritius and the Netherlands followed closely with $226.18 million (20.78%) and $149.93 million (13.77%), respectively.
Lagos Retains Top Destination Status
Lagos state maintained its position as the primary recipient of capital inflows, attracting $771.68 million (65.38%). Abuja (FCT) came in second with $370.80 million (34.07%), while Rivers state received $6.00 million (0.55%).
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Stanbic IBTC Bank Tops Recipient List
Among financial institutions, Stanbic IBTC Bank Plc stood out, receiving the highest capital inflow of $499.45 million (45.88%). Citibank Nigeria Limited followed with $229.06 million (21.04%), and Rand Merchant Bank Plc recorded $85.85 million (7.89%).
Experts Optimistic About Future Growth
Analysts see the surge in capital inflows, particularly in the manufacturing sector, as a positive sign for Nigeria’s economic prospects. “This influx of capital from various sources and sectors fuels optimism for sustainable economic growth and development in the coming quarters,” commented a market analyst.
Looking Ahead:
While the upward trend is encouraging, it’s crucial to monitor the sustainability of these inflows and their impact on key economic indicators. Continued efforts to improve the business environment and address infrastructure challenges will be vital to attract and retain long-term investments and unlock Nigeria’s full economy.
