Key points
- The import of capital was US$ 5,328.88 billion in 2022, a decrease of 20.47% compared to US$ 6,700.51 million in 2021
- The largest capital import during the period was received from Other Investment, which represented 65.17% (US$691.23 million) of the total capital imported in the fourth quarter of 2022.
- Lagos State remained the top destination in Q4 2022 with US$600.54 million, representing 56.62% of total capital investment in Nigeria.
Nigeria attracted a sum of US$1,060.73 as capital imports in Q4 2022, down from US$2,187.63 billion recorded in Q4 2021, indicating a decrease of 51.51 %.
This was revealed by the Office for National Statistics on Tuesday in its report Capital Import of Nigeria Q4 2022.
The importation of capital is one of the main areas through which the Nigerian economy accesses foreign exchange, which is currently in high demand in the country, especially at a time when oil export revenues have declined.
briefcase
The report stated that compared to the previous quarter, capital imports also fell 8.53% from US$1,159.67 billion in the third quarter of 2022, adding:
- “The largest import of capital during the period was received from Other Investment, which represented 65.17% (US$691.23 million) of the total capital imported in the fourth quarter of 2022.
- “It was followed by Portfolio Investment with 26.89% (US$285.26 million) and Foreign Direct Investment (FDI) with 7.94% (US$84.23 million).
- “Broken down by Sectors, the import of capital to the productive sector registered the highest income of US$ 392.54 million, representing 37.01% of the total capital imported in 4Q 2022. It was followed by capital imported to the banking sector, valued at US$255.45 million (24.08%) and Telecommunications with US$168.27 million (15.86%).
Origin and destination
The report noted that by country of origin it reveals that UK capital ranked first in Q4 2022 with US$455.24 million, representing 42.92%, they added:
- It was followed by the Republic of South Africa and the United Arab Emirates valued at US$119.31 million (11.25%) and US$116.82 million (11.01%) respectively.
- “By investment destination, Lagos State remained the top destination in Q4 2022 with US$600.54 million, representing 56.62% of total capital investment in Nigeria.
- “It was followed by Abuja (FCT), valued at US$424.50 million (40.02%).
They added that the categorization of capital import by banks shows that Citibank Nigeria Limited ranked first in Q4 2022 with USD 308.72 million (29.10%), followed by Standard Chartered Bank Nigeria Limited with USD 232.45 million (21.91%) and Rand Merchant Bank with USD 102.00 (9.62%).
“In annual terms, the import of capital was US$5,328.88 million in 2022, a decrease of 20.47% compared to US$6,700.51 million in 2021,” they said.
background
Nigeria attracted a sum of $4,890 million as capital imports between January and November 2022, which represents a 12.3% decrease compared to the $5,890 million registered in the same period of 2021.
Capital inflows into Nigeria fell sharply in 2020 to $9.68 billion from $23.71 billion in 2019. The figures fell further in 2021, attracting just $6.7 billion, the lowest level in 5 years. The 2022 numbers look set to fall further.
During the eleven months under review, $1.97 billion entered the country in the form of loans, representing 40.2% of total capital inflows in the review period, compared to the corresponding period of 2021, Loan inflow increased by 26.8% to $1.55 billion.
