28 states failed to attract capital importation in the first quarter of 2023, according to the new Foreign Direct Investment data released by the National Bureau of Statistics.

Out of the 36 states and the Federal Capital Territory, only Lagos, Abuja, Adamawa, Akwa Ibom, Anambra, Ekiti, Ogun, Ondo, and Niger witnessed capital inflows.

Cumulative capital inflows totalled $1.13bn. Lagos ($704m) attracted the most capital in the period under review, followed by Abuja at $410.27m and Akwa Ibom $5.21m.

Adawama attracted $4.50m, Anambra $4m, Ogun $2.09m, Niger $1.50m, Ondo $0.20m, and Ekiti $0.01m.

The report read, “By destination of investment, Lagos State remained the top destination in Q1, 2023 with $704.87m, accounting for 62.23 per cent of total capital investment in Nigeria. This was followed by Abuja, valued at $410.27m (36.22 per cent).”

The NBS disclosed that there was a 28 per cent decrease in total capital importation when compared to the first quarter of 2022.

The report read, “Total capital importation into Nigeria in Q1, 2023 stood at $1.13bn, lower than $1.57bn recorded in Q1 2022, indicating a decrease of 28 per cent. When compared to the preceding quarter, capital importation rose by 6.78 per cent from $1.06bn in Q4 2022.”

It was also disclosed that the largest capital importation during the period was received from portfolio investment, which accounted for 57.32 per cent ($649.28m) of total capital imported in Q1 2023.

This was followed by other investment with 38.31 per cent ($435.76m) and Foreign Direct Investment with 4.20 per cent ($47.60m).

An analysis by sectors showed that capital importation into the banking sector recorded the highest inflow of $304.56m, representing 26.89 per cent of total capital imported in Q1 2023.

This was followed by capital imported into the production sector, valued at $256.12m (22.61 per cent), and IT Services with $216.06m (19.08 per cent).

It was further disclosed that the capital importation from the United Kingdom was highest in Q1, 2023.

The report added, “Capital importation by country of origin reveals that capital from the United Kingdom ranked top in Q1, 2023 with $673.64m, accounting for 59.47 per cent. This was followed by the United Arab Emirates and the United States valued at $108.28m (9.56 per cent) and $95.36m (8.42 per cent) respectively.”

It was also noted that “Categorisation of Capital importation by banks shows that Citibank Nigeria Limited ranked top in Q1, 2023 with $424.13m (37.45 per cent). This was followed by Standard Chartered Bank Nigeria Limited with $360.33m (31.81 per cent) and Stanbic IBTC Bank with $151.85 (13.41 per cent).”

The Co-Managing Partner and Chief Executive Officer, Comercio Partners Asset Management, Tosin Oshunkoya, recently said foreign investors’ attraction to the Nigerian economy was waning.

He said, “The ravaging trend of inflation across major developed economies has triggered hawkish policy responses such as interest rate hikes, which tend to spur capital repatriation from frontier economies such as Nigeria while discouraging foreign capital inflows into the local economy, particularly through foreign portfolio investments.’

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