Nigeria gets $285m foreign capital from African investors –NBS

The National Bureau of Statistics has disclosed that African investors, excluding those from Nigeria, contributed a notable $285.11m in foreign capital to Nigeria in the third quarter of 2024.

This contribution accounted for 22.76 per cent of the total foreign capital inflow into the country, highlighting the significant role played by African nations in the capital importation landscape.

An analysis of the latest capital importation report of the NBS noted a decline in Africa’s overall contribution compared to the second quarter of 2024 and the same period last year.

The NBS data indicated that the total capital contribution from Africa in Q3 2024 amounted to $285.11m, a 43.73 per cent decline compared to Q2 2024, which recorded $506.68m.

On a year-on-year basis, Africa’s contribution also fell by 16.77 per cent from $342.55m in Q3 2023.

The key African contributors in Q3 2024 were Mauritius, the Republic of South Africa, Ghana, and Morocco.

Mauritius remained a significant source of foreign capital with an inflow of $97.63m, though this reflected a sharp decline of 61.05 per cent from the $250.70m recorded in Q2 2024.

The drop was even steeper year-on-year, with Mauritius contributing $226.18m in Q3 2023, marking a 56.85 per cent decline.

The Republic of South Africa contributed $185.03m in Q3 2024, representing a substantial year-on-year growth of 59.02 per cent compared to $116.37m in Q3 2023.

However, on a quarter-on-quarter basis, South Africa’s contribution fell by 27.73 per cent from the $255.98m recorded in Q2 2024.

Ghana contributed $2.35m in Q3 2024 for the first time in recent quarters, signalling a renewed interest from Ghanaian investors.

Morocco also emerged as a minor contributor, recording $0.10m in capital inflows during the period.

In contrast to the declining trends from other African countries, foreign capital inflow from Nigerian investors showed significant growth.

The country contributed $10.84m to its foreign capital inflows in Q3 2024, reflecting a remarkable increase of 261.33 per cent year-on-year from $3m in Q3 2023.

On a quarter-on-quarter basis, the foreign capital inflow from Nigerian investors surged by 198.63 per cent from $3.63m recorded in Q2 2024.

While Africa accounted for 22.76 per cent 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.

The United Kingdom maintained its dominance with $502.6m in Q3 2024, though this marked a significant decline from $1.12bn recorded in Q2 2024.

The Netherlands also featured prominently, contributing $121.92m in Q3 2024.

However, this dropped sharply from $577.82m in Q2 2024, reflecting cautious investment trends.

From North America, the United States showed consistent growth, recording $163.86m in Q3 2024, up from $81.5 m in Q2 2024.

This reflects increased investor confidence in the United States despite global economic uncertainties.

While African inflows declined, contributions from Asian countries were more notable in Q3 2024, particularly from Saudi Arabia, China, and Singapore.

Saudi Arabia emerged as a strong contributor with $28.01m, which marked a 48.65 per cent decline from $54.55m in Q2 2024.

China’s inflows stood at $9.58m in Q3 2024, slightly down from $10.63m in Q2 2024, reflecting a 9.88 per cent decline quarter-on-quarter.

Singapore, which contributed $5.63m, also saw a notable drop from its Q2 2024 inflow of $13.49m, translating to a 58.26 per cent decline.

The NBS report highlights a decline in overall foreign capital inflow into Nigeria in Q3 2024, totalling $1.25bn, representing a 51.89 per cent drop from the $2.60bn recorded in Q2 2024.

This drop highlights a sharp contraction in foreign investments despite an overall annual increase of 91.35 per cent from Q3 2023.

Although Africa’s contribution to Nigeria’s foreign capital inflows remains significant, the decline in inflows from Mauritius and South Africa has affected the continent’s overall share.

In contrast, Europe and North America have shown steady performance, reinforcing their position as major foreign capital sources in Nigeria.

Also, the notable rise in contributions from Nigerian investors highlights growing domestic investor confidence, suggesting a potential shift in the country’s capital dynamics.