Capital importation dropped by 36.45 percent in the third quarter (Q3) of 2023, according to the National Bureau of Statistics (NBS).

The bureau said the total capital imported was $654.65 million, down from the $1.03 billion recorded in Q2 2023.

NBS data for Q3 is the lowest capital importation into the country in over 10 years.

Capital importation is divided into three main investment types: foreign direct investment (FDI), foreign portfolio investment (FDI) and other investments — each comprising various sub-categories.

According to NBS, $59.77 million was credited to foreign direct investment, portfolio investment had $87.11 million and other investments $507.77 million.

“In Q3 2023, total capital importation into Nigeria was US$654.65 million, lower than US$1,159.67 million recorded in Q3 2022, indicating a decline of 43.55%,” NBS said.

“In comparison to the preceding quarter, capital importation fell by 36.45% from US$1,030.21 million in Q2 2023.

“Other Investment ranked top accounting for 77.56% (US$507.77 million) of total capital importation in Q3 2023, followed by Portfolio Investment with 13.31% (US$87.11 million) and Foreign Direct Investment (FDI) with 9.13% (US$59.77 million).”

The report also shows that the production sector recorded the highest inflow with $279.51 million, representing 42.70 percent of total capital imported in the quarter.

This was followed by the financial sector, which recorded $127.93 million (19.54 percent), and shares accounted for $85.49 million (13.06 percent).

In the period under review, the Netherlands was the largest source of foreign capital imported into Nigeria, accounting for 26.83 percent ($175.62 million).

Singapore and United States were the next largest sources, holding 12.09 percent ($79.15 million) and 10.24 percent ($67.04 million), respectively.

NBS said: “Lagos state remained the top destination in Q3 2023 with US$308.83 million, accounting for 47.18% of total capital importation, followed by Abuja (FCT) with US$194.66 million (29.73%) and Abia state with US$150.09 million (22.93%).”

“Stanbic IBTC Bank Plc received the highest capital importation into Nigeria in Q3 2023 with US$222.84 million (34.04%), followed by Citibank Nigeria Limited with US$190.03 million (29.03%) and Zenith Bank Plc with US$83.04 (12.68%).”

Q3 represents the first full quarter since Bola Tinubu assumed office as Nigeria’s president.

The Cable/NewsScroll