The National Bureau of Statistics (NBS) has revealed that African investors (excluding those from Nigeria) contributed 22.76% of the total foreign capital imported into Nigeria in the third quarter of 2024.
This amounted to $285.11 million, showing a significant role played by African countries in the capital importation landscape.
However, an analysis of the capital importation report of the NBS highlighted a decline in Africa’s overall contribution when compared to both the second quarter of 2024 and the same period last year.
The NBS data indicates that the total capital contribution from Africa in Q3 2024 amounted to $285.11 million. This figure highlights a 43.73% decline when compared to Q2 2024, which recorded $506.68 million. On a year-on-year basis, Africa’s contribution also fell by 16.77% from $342.55 million in Q3 2023.
Among the key African contributors in Q3 2024 were Mauritius, the Republic of South Africa, Ghana, and Morocco.
In contrast to the declining trends from other African countries, foreign capital inflow from Nigerian investors showed significant growth. The country contributed $10.84 million to its foreign capital inflows in Q3 2024, reflecting a remarkable increase of 261.33% year-on-year from $3.00 million in Q3 2023. On a quarter-on-quarter basis, the foreign capital inflow from Nigerian investors surged by 198.63% from $3.63 million recorded in Q2 2024.
While Africa accounted for 22.76% of Nigeria’s total capital inflow, the report highlighted significant contributions from other continents, particularly Europe, North America, and Asia. Europe remained the largest contributor to Nigeria’s foreign capital, driven by inflows from the United Kingdom and the Netherlands.
China’s inflows stood at $9.58 million in Q3 2024, slightly down from $10.63 million in Q2 2024, reflecting a 9.88% decline quarter-on-quarter. Singapore, which contributed $5.63 million, also saw a notable drop from its Q2 2024 inflow of $13.49 million, translating to a 58.26% decline.
The NBS report highlights a decline in overall foreign capital inflow into Nigeria in Q3 2024, which totaled $1.25 billion, representing a 51.89% drop from the $2.60 billion recorded in Q2 2024. This drop highlights a sharp contraction in foreign investments despite an overall annual increase of 91.35% from Q3 2023.
The sharp increase in contributions from Nigerian investors also reflects renewed investor confidence within Nigeria, signaling a potential shift in the country’s capital dynamics.