Nigeria’s Capital Importation Declines By 26.4% to $3.9bn In 2023

Nigeria’s Capital Importation Declines By 26.4% to $3.9bn In 2023

According to recent data released by the National Bureau of Statistics (NBS), Nigeria experienced a significant decline in foreign capital inflow in 2023….READ ALSO

with a total capital importation of $3.91 billion. The data further revealed that foreign portfolio investment (FPI) accounted for 29.5% of this total, amounting to $1.15 billion.

This decline marks a 26.4% drop in capital importation compared to previous years, reaching a 17-year low since 2007. The decrease in foreign capital inflow could have significant implications for the country’s economy, affecting various sectors and investment opportunities.

The NBS report also highlighted the distribution of foreign investments across different states in Nigeria. Lagos State emerged as the top destination for foreign investments, attracting $2.50 billion, representing 64% of the total capital inflow. Following Lagos is the Federal Capital Territory (FCT), which received $1.17 billion, making up 30% of the total capital importation.

However, the report also pointed out that eight states, including Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Taraba, Yobe, and Zamfara, recorded zero foreign investment over the past five years (2019 – 2023). This disparity in investment distribution underscores the need for policies and initiatives to promote investment opportunities in these states.

The data provides valuable insights into the state of foreign investment in Nigeria and highlights the areas that require attention to attract more foreign capital. As the government seeks to drive economic growth and development, addressing the factors contributing to the decline in foreign capital inflow will be crucial for fostering a conducive investment climate in the country.