Nigeria’s revenue from Foreign Direct Investment (FDI) has dropped to $29.83 million in the second quarter of 2024, the lowest level recorded since 2013, according to the latest data from the National Bureau of Statistics (NBS).
The decline represents a 65.33% drop from the $86.03 million registered in the same period in 2023 and a 74.97% decline from the $119.18 million recorded in the first quarter of 2024.
The NBS report revealed that the bulk of FDI in Q2 2024 came from equity investment, amounting to $29.82 million.
This figure represents a 74.98% decrease from $119.17 million in Q1 2024 and a 65.33% year-on-year decline from $86.02 million in Q2 2023.
The “Other Capital” component of FDI saw minimal inflows, with just $0.0085 million recorded, which is a 33.33% decline from the $0.01275 million seen in both Q1 2024 and Q2 2023.
FDI accounted for only 1.15% of Nigeria’s total capital importation of $2.60 billion during the quarter. Foreign currency loans and portfolio investments made up the bulk of capital importation, contributing $2.55 billion, or 98.08% of total inflows.
The report also noted a sharp decline in portfolio investments, which stood at $1.40 billion in Q2 2024—a 74.97% drop from the $5.60 billion reported in Q1 2024, and a 65.33% fall from the $4.05 billion recorded in Q2 2023.
Similarly, foreign loans, which constitute a major portion of capital importation, dropped significantly to $1.15 billion, a 74.98% decrease from $4.60 billion in Q1 2024 and a 65.33% reduction from $3.32 billion in the same quarter last year.
Despite the declines in FDI, portfolio investments, and foreign loans, Nigeria’s total capital importation of $2.60 billion for Q2 2024 reflected a 152.81% year-on-year increase from $1.03 billion in Q2 2023.
However, this figure represented a 22.85% decline from the $3.38 billion recorded in the first quarter of 2024.
The NBS’s Nigeria Capital Importation stated, “In Q2 2024, total capital importation into Nigeria stood at US$2,604.50 million, higher than US$1,030.21 million recorded in Q2 2023, indicating an increase of 152.81%.
“In comparison to the preceding quarter, capital importation declined by 22.85% from US$3,376.01 million in Q1 2024.
“Portfolio Investment ranked top with US$1,404.70 million, accounting for 53.93%, followed by Other Investments with US$1,169.97 million, accounting for 44.92%, and Foreign Direct Investment recorded the least
with US$29.83 million (1.15%) of total capital importation in Q2 2024.”
The banking sector also recorded the highest inflow with US$1,123.95 million, representing 43.15% of total capital imported in Q2 2024, followed by the production/manufacturing sector, valued at US$624.71 million (23.99%), and Trading sector with US$569.22 million (21.86%).
Capital Importation during the reference period originated largely from the United Kingdom, with US$1,120.15 million, showing 43.01% of the total capital imported, the NBS claimed.
This was followed by the Netherlands with US$577.82 million (22.19%) and the Republic of South Africa with US$255.98 million (9.83%).
According to NBS, out of the three states that recorded capital importation during the quarter, Lagos State remained the top destination with US$1,367.84 million, accounting for 52.52% of the total capital imported.
Abuja (FCT) followed with US$1,236.64 million (47.48%), and Ekiti State with US$0.0003 million.
While Citibank Nigeria Limited received the highest capital importation into Nigeria in Q2 2024 with US$818.46 million (31.43%), followed by Standard Chartered Bank Nigeria Limited with US$654.79 million (25.14%) and Rand Merchant Bank Plc with US$488.59 (18.76%).
