The latest data on Foreign Direct Investment released by the National Bureau of Statistics (NBS) showed that Lagos State and Abuja, the federal capital territory, attracted a total of $1.13 billion in foreign direct investment (FDI) in the first quarter of 2023.
This, according to NBS, indicated a 28 percent decrease in total capital importation when compared to the first quarter of 2022 with a total of $1.57 billion.
However, when compared to the preceding Q4, capital importation rose by 6.78 percent up from $1.06 billion in Q4 2022.
“Total capital importation into Nigeria in Q1, 2023 stood at $1.13bn, lower than $1.57bn recorded in Q1 2022, indicating a decrease of 28 percent.
When compared to the preceding quarter, capital importation rose by 6.78 per cent from $1.06bn in Q4 2022.”
Besides Lagos and Abuja, other states of the federation that attracted capital importation during the quarter are Adamawa, Akwa Ibom, Anambra, Ekiti, Ogun, Ondo, and Niger.
Thus, out of the 36 states and Abuja, only 9 attracted the attention of foreign investors while 28 states attracted zero capital importation in the period under review.
A breakdown of the numbers showed that Lagos alone attracted US $704 million, more than 2/3 of the cumulative capital imports while Abuja attracted $410.27 million and Akwa Ibom $5.21 million.
Adawama attracted $4.50 million, Anambra $4 million, Ogun $2.09 million, Niger $1.50 million, Ondo $0.20 million, and Ekiti $0.01 million.
“By destination of investment, Lagos State remained the top destination in Q1, 2023 with $704.87 million, accounting for 62.23 percent of total capital investment in Nigeria. This was followed by Abuja, valued at $410.27m (36.22 per cent),” the report stated.
According to NBS, portfolio investment amounting to $649.28 million or 57.3 percent accounted for the largest capital importation during the Q1, 2023 period.
This was followed by other investments with 38.31 percent ($435.76m) and Foreign Direct Investment with 4.20 percent ($47.60m).
Sectoral Analysis of Capital Import
Sectoral analysis of the capital imports showed that the banking sector recorded the highest inflow of $304.56 million, representing 26.89 percent of total capital imported followed by capital imported into the production sector, valued at $256.12 million (22.61 percent), and IT Services with $216.06 million (19.08 percent).
In terms of capital importation by country, the United Kingdom was the highest capital importation origin in Q1, 2023 with a total of $673.64 million. This was followed by the United States and the Emirates with $108.28 million (9.56 percent) and $95.36 million (8.42 percent) respectively.
“Categorisation of capital importation by banks shows that Citibank Nigeria Limited ranked top in Q1, 2023 with $424.13m (37.45 percent). This was followed by Standard Chartered Bank Nigeria Limited with $360.33m (31.81 percent) and Stanbic IBTC Bank with $151.85 (13.41 percent),” the report stated.
Data obtained from the NBS showed that investment inflows into the country have been on a steady decline since 2019 from $24 billion in 2019 to $9.7 billion and $6.7 billion in 2020 and 2021 respectively.
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