Lagos State Nets $1,119.44m Capital Investment in Q1 2022
Nigeria’s economic hub, Lagos State, has remained the top investment destination in the country, netting a sum of $1,119.44m in the first quarter (Q1) of 2022. This data, contained in the report for capital importation released by the National Bureau of Statistics (NBS), accounts for 71.16 per cent of the total capital investment in Nigeria.
Though it looks like a large sum, the total value falls compared with last quarter’s $2,187.63m — a percentage decrease of 28.09 per cent. This declining trend is seen when compared to the first quarter of 2021. Capital importation value has shown a reduction of 17.46 per cent.
A breakdown of the report released by the National Bureau of Statistics states that Portfolio investment had the highest contribution when listed by type, accounting for about 60.87 per cent in value and $957.58m.
The second contributor by type was the other investment and then the Federal Direct Investment, responsible for 9.85 per cent of the total capital investment in the first quarter of 2021.
Lagos was followed closely by Abuja as documented in the report. With a value of $446.81m, Abuja, the Federal Capital Territory, was the second-highest turnover for capital investment in Nigeria for the first quarter of 2022.
The capital importation into any country is the value of foreign investments flowing into the country’s economy. A country’s capital importation is made up of Foreign Direct Investments, Foreign Portfolio investments and Other Investments such as loans, etc.
The United Kingdom was stated to have the highest capital importation into Nigeria, followed by The Republic of South Africa, and then the United States with $82.07m.
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Meanwhile, the inflow into Banking had the highest sector flow. The financial sector facilitated a net flow of $818.84. Existing data reveals that Standard Chartered Bank brought in most of the capital, a total figure of $543.20m. Citi Bank Nigeria Limited came in next with $439.03m and third on the list is Stanbic IBTC with a value of $251.52 representing 15.99 per cent.
While the general performance of Nigeria’s Capital importation seems hopeful and at best okay for the country, data shows that the country still has not seen an increase in levels up to those seen in the pre-pandemic era. Values which exceeded $ 4 billion were recorded during the years before the pandemic.
