- Banking sector records highest $2.07bn inflow
- Internet subscriptions reach 164m as voice users drop by 3% – NBS
The National Bureau of Statistics said on Monday that Nigeria’s capital importation grew by 210.16 percent in the first quarter of 2024.
The total capital imported stood at $3.38 billion in Q1 2024, up from the $1.09 billion recorded in Q4 2023.
Capital importation is the inflow of funds from abroad to fuel investment, trade, and manufacturing within a country.
On a year-on-year basis, the NBS data shows that foreign investment into the country grew by 198.06 percent compared to $1.13 billion in Q1 2023.
“In Q1 2024, total capital importation into Nigeria stood at US$3,376.01 million, higher than US$1,132.65 million recorded in Q1 2023, indicating an increase of 198.06%.
“In comparison to the preceding quarter, capital importation rose by 210.16% from US$1,088.48 million in Q4 2023,” the NBS said.
The bureau said foreign portfolio investments ranked top with $2.08 billion, accounting for 61.48 percent, followed by other investments with $1.18 billion, accounting for 34.99 percent.
Foreign direct investment recorded the least, with $119.18 million (3.53 percent) of total capital importation in Q1 2024.
The sector that received the highest capital investment was banking, followed by trading and production/manufacturing sectors.
“The banking sector recorded the highest inflow with $2.07 billion, representing 61.24 percent of total capital imported in Q1 2024,” the NBS said.
The trading sector recorded $494.93 million (14.66 percent), while the production and manufacturing sectors received $191.92 million (5.68 percent).
“Capital importation during the reference period originated largely from the United Kingdom with US$1,805.83 million, showing 53.49% of the total capital imported,” the bureau said.
“This was followed by the Republic of South Africa with US$582.34 million (17.25%) and the Cayman Islands with US$186.21 million (5.52%).”
According to NBS, only Lagos, Abuja and Ekiti States attracted capital importation.
Lagos State remained the top destination with $2.78 billion, accounting for 82.42 percent of the total imported capital, Abuja (FCT) followed with $593.58 million (17.58 percent), and Ekiti State with $12,750 million.
NBS said Stanbic IBTC Bank Plc received the highest capital importation by banks, recording $1.25 billion (37.24 percent) during the reviewed period, Citibank Nigeria Limited got $547.71 million (16.22 percent) and Rand Merchant Bank Plc received $528.73 (15.66 percent).
Nigeria’s capital importation during the reference period originated largely from the United Kingdom with $1,805.83m, showing 53.49% of the total capital imported.
This was followed by the Republic of South Africa with $582.34m (17.25%) and the Cayman Islands with $186.21m (5.52%).
Internet subscriptions reach 164m as voice users drop by 3% – NBS
Also, Nigeria’s telecom sector saw a surge in internet subscriptions to 164 million in Q1 2024, while voice users dropped 3 per cent, the National Bureau of Statistics said.
A NBS Telecom Data report released on Monday, revealed that “the total number of active voice subscribers in Q1 2024 was 219,304,281 from the 226,161,713 reported in Q1 2023, indicating a growth rate of –3.03 per cent. On a quarter-on-quarter basis, active voice subscribers fell by 2.41 per cent.
“Also, in Q1 2024, the total number of active internet subscribers stood at 164,368,292 from 157,551,104 reported in Q1 2023, showing an increase of 4.33 per cent on a quarter-on-quarter basis, this grew by 0.32 per cent,” it added.
According to the Bureau, Lagos State led in both categories with 25.96 million active voice subscribers and 18.84 million active internet subscribers.
Ogun and Kano followed closely behind in internet subscriptions, with 9.53 million and 9.07 million, respectively, while Bayelsa recorded the lowest figures in both voice and internet users.
The report noted that MTN solidified its market lead in Q1 2024, commanding the largest share of subscriptions.
The telecom giant recorded 81.8 million voice subscribers and 69.4 million internet users. Globacom followed closely in second place, with 62.2 million voice subscribers and 44.4 million internet users.
Airtel came in third, with 63.4 million voice subscribers and 46.8 million internet users. 9mobile trailed behind, with 11.7 million voice subscribers and 3.3 million internet users.
Soaring non-bank transactions threaten financial stability in West Africa – Cardoso
In the same vein, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, has said that rising transaction volumes by non-banks threatens financial stability in West Africa.
He stated this on Monday at the 10th meeting of the College of Supervisors for Non-Bank Financial Institutions of the West African Monetary Zone.
Cardoso was represented by the apex bank’s Acting Director of the Other Financial Institutions Department, Abayomi Arogundade.
He said, “We reiterate the importance of monitoring trends, risks and innovations of NBFIs/OFIs (Non-Bank Financial Institutions or Other Financial Institutions) as their increasing transaction volumes pose major financial system stability risk.
“Fintech loans are one of the most commonly reported innovations. While overall this may appear small in relation to the size of credit by DMBs, some jurisdictions globally, have noted a growing trend in the volume of these loans.
“In many cases, fintech credit is provided via electronic platforms that connect lenders to borrowers – in which case the platform takes the role of a financial auxiliary.
“In some cases, however, loans are taken on the balance sheet of these platforms (even if it is short-term), in which case the platforms are akin to new types of financial intermediaries. These entities are typically fintech firms that offer applications, software, and other technologies to streamline mobile and online banking.
“In many jurisdictions, these digital firms have a banking license and are subject to prudential requirements or they may just be regulated as Fintech payment service firms. Innovations linked to crypto or stablecoin assets were also reported by some jurisdictions.”
Non-bank financial firms offer financial services but don’t hold banking licences and therefore can’t accept deposits.