Mkpoikana Udoma
Port Harcourt — Surprisingly, Nigeria’s oil and gas sector failed to attract any capital imports in the first quarter of 2024, despite the country’s reliance on the industry as its mainstay, according to a report released by the National Bureau of Statistics, NBS.
NBS data showed that other sectors such as banking, trading, agriculture, transport, telecommunications, IT services, and manufacturing received significant capital inflows, amounting to $3.376billion, higher than $1.132.65bn recorded in Q1 2023, indicating an increase of 198.06 percent.
In comparison to the preceding quarter, capital importation into the country rose by 210.16% from $1,088.48 million in Q4 2023.
Portfolio investment led the charge, accounting for 61.48% of the total capital importation, followed by other investments such as loans 36% and foreign direct investment, 2.52%.
The banking sector emerged as the top destination for capital imports, receiving $2.067 billion, while Lagos state accounted for 82.42% of the total capital imported.
Stanbic IBTC Bank Plc received the highest capital importation, with $1.257 billion.
The report by NBS reads “portfolio investment ranked top with US$2,075.59 million, accounting for 61.48%, followed by Other In vestment with US$1,181.25 million, accounting for 34.99%. Foreign Direct Investment recorded the least with US$119.18 million (3.53%) of total capital importation in Q1 2024.
“The Banking sector recorded the highest inflow with US$2,067.44 million, representing 61.24% of total capital imported in Q1 2024, followed by the Trading sector, valued at US$494.93 million (14.66%), and Production/Manufacturing sector with US$191.92 million (5.68%).
“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. This was followed by Republic of South Africa with US$582.34 million (17.25%) and the Cayman Islands with US$186.21 million (5.52%).
“Out of the three states that recorded capital importation during the quarter, Lagos state remained the top destination with US$2,782.41 million, accounting for 82.42% of the total capital imported. Abuja (FCT) followed with US$593.58 million (17.58%), and Ekiti state with US$0.01 million.
“Stanbic IBTC Bank Plc received the highest capital importation into Nigeria in Q1 2024 with US$1,257.38 million (37.24%), followed by Citibank Nigeria Limited with US$547.71 million (16.22%) and Rand Mer chant Bank Plc with US$528.73 (15.66%).”