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Capital importation rose by 224 percent year-on-year, YoY, to $9.04 billion in the first 10 months of 2024 (10m’24) from $2.9 billion in the same period of 2023, indicating increased foreign investment in the country.
Data analysis from the Central Bank of Nigeria, CBN, Economic reports for the period showed that capital outflows also grew by 77.5 percent YoY , to $8.24 billion in 10m’24 from $4.64 billion in 10m’23.
Quarter-on-Quarter, QoQ, capital inflows fell by 21.2 percent to $2.6 billion in the second quarter of 2024 (Q2’24) from $3.3 billion in Q1’24.
The downward trend continued in Q3’24 as capital inflows fell by 51.9 percent to $1.25 billion.
But in October Capital inflows rose sharply by 372.5 percent month-to-month to $1.89 billion from $400 million in September.
Further analysis of the data showed that capital outflows rose by 32.7 percent QoQ to $3 billion in Q2’24 from $2.26 billion in Q1’24 and down by 7.9 percent to $2.08 billion in Q3’24.
However, in October capital outflows rose by 19.4 percent MoM to $800 million from $670 million in September.
The CBN in its October Economic report noted that the MoM increase in capital inflows was driven mainly by increased portfolio investments in both equity and money market instruments.
It stated: “Analysis of capital importation by sector indicated that the banking sector accounted for 49.21 per cent of total inflow.
“This was followed by the financing sector (26.12 percent), production and manufacturing sector (9.72 percent), brewering(5.55 percent), telecommunication (4.65 percent), construction (3.39 percent), shares (0.73 percent), while other sectors accounted for the balance.
“Capital inflow by originating country showed that the United Kingdom, UK, was the major source of capital, accounting for 54.8 per cent of the total. This was followed by the United States of America (13.89 percent); Netherlands (8.88 percent); Republic of South Africa (8.12 percent); Singapore (4.30 percent); and Mauritius (3.10 percent). Other countries accounted for the balance.”
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