Nigeria attracted $5.97 billion investments in the first half of 2024, according to a capital importation report by the National Bureau of Statistics (NBS) on Tuesday.
The report indicated that total capital importation into the country stood at $2.6 billion in the second quarter. But this is a 22.85 percent decline from $3.38 billion recorded in the first three months of the year.
“In Q2 2024, total capital importation into Nigeria stood at $2,604.50 billion, higher than $1,030.21 billion recorded in Q2 2023, indicating an increase of 152.81%.
“In comparison to the preceding quarter, capital importation declined by 22.85% from $3,376.01 million in Q1 2024,” NBS said.
Investments into Africa’s biggest economy has been waning as businesses grapple with currency volatility, rising inflation and energy cost.
To attract badly needed investors, the Central Bank of Nigeria (CBN) has remained aggressive in its approach as it raised benchmark interest rates to 27.25 percent.
These rate hikes which is hurting local businesses operations are yet to bring in the desired results in terms of investments.
According to the report, portfolio investment ranked top with $1.4 billion, accounting for 53.93 of total foreign inflows, while other investments recorded $1.1 billion, accounting for 44.92 percent.
“Foreign Direct Investment recorded the least with $29.83 billion (1.15%) of total capital importation in Q2 2024,” the Abuja-based state agency said.
The banking sector recorded the highest inflow with $1.12 billion. This represents 43.15 percent of total capital imported in Q2 2024.
The production and manufacturing sector recorded $624.71 million while the trading sector value stood at $569.22 million.
Nigeria had the highest capital importation in Q2 from the United Kingdom with $1.12 billion, showing 43.01 percent of the total capital imported.
Netherlands and South Africa also contributed to the inflows.
However, only three states recorded capital importation with Lagos receiving the highest, making the state the top investment destination in the country.
“Of the three states that recorded capital importation during the quarter, Lagos state remained the top destination with $1,367.84 billion, accounting for 52.52% of the total capital imported.
“Abuja (FCT) followed with $1,236.64 billion (47.48%), and Ekiti state with $0.0003 million,” the report stated.
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