28 states have no capital importation in Q1 2023

A NATIONAL Bureau of Statistics (NBS) report states that only nine states were destinations for capital importation that came into Nigeria between January and March 2023. 

These states are Adamawa, Akwa-Ibom, Anambra, Ekiti, Lagos, Niger, Ogun, Ondo and the Federal Capital Territory, Abuja. This means that no capital importation came through 28 states within the month in review. 

The NBS disclosed that the total capital importation within the first three months of 2023 rose to $1.13 billion. This is a 6.8 per cent increase from the $1.1 billion recorded in the fourth quarter of 2022. 

Capital importation, according to this research, is the influx of external resources into the local capital resources for the purposes of investment, trade and business production. The NBS divides it into three main investment types: Foreign Direct Investment (FDI), Portfolio Investment and Other Investments, each comprising various sub-categories.

According to the report, the largest capital importation came from Portfolio Investment, which accounted for 57.32 per cent ($649.28 million). It was followed by Other Investments with 38.31 per cent ($435.76 million), and then Foreign Direct Investment (FDI) with 4.20 per cent ($47.60 million). 

The NBS stated that sectorally, “Capital importation into the banking sector recorded the highest inflow of $304.56 million, representing 26.89 per cent of total capital imported in the first quarter (Q1) of 2023. This was followed by capital imported into the production sector, valued at $256.12 million (22.61 per cent), and IT Services with $216.06 million (19.08 per cent).”






     

     

    Citibank Nigeria, Standard Chartered Bank Nigeria Limited and Stanbic IBTC Bank led the list in the banking sector with $424.13 million (37.45 per cent), $360.33 million (31.81 per cent) and $151.85 (13.41 per cent) respectively. 

    Destination of Investment

    According to the NBS data, Lagos State was the highest point of investment in Q1 2023 with $704.87 million. This is  62.23 per cent of the total capital investment that came into Nigeria. 

    Adamawa had $4.5 million, Akwa-Ibom $5.21 million, Anambra $4 million, Ekiti $0.01 million, Niger $1.5 million, Ogun $2.09 million and Ondo $0.20 million. 

    Meanwhile, by country of origin, the United Kingdom ranked top in Q1 2023 with $673.64 million. It was followed by the United Arab Emirates and the United States valued at $108.28 million and $95.36 million respectively. 

    Kehinde Ogunyale tells stories by using data to hold power into account. You can send him a mail at [email protected] or Twitter: Prof_KennyJames

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