Sectors that attracted the most foreign investment in Nigeria 2024 Q2

The total capital importation of $5.98 billion in the first half of 2024 represents an increase of 176% compared to the figure in the first half of 2023.

In the first quarter of 2023, capital importation stood at $1.13 billion while that of the second quarter was $1.03 billion- this total $2.16 billion in the first six months of 2023.

The 176% increase in capital importation in the first six months of 2024 stems from the 750 basis points increase in interest rate to tame inflation. This attracted significant Foreign Portfolio Investment (FPIs) into the money market.

However, capital importation to the real economy through Foreign Direct investments (FDIs) suffered falling to a record low of $29 million in the second quarter of 2024.

Below are the top ten sectors with the highest capital importation between January and June 2024.

10. Transport: the transport sector recorded total capital importation of $19.05 million in the first half of 2024. Capital importation in this sector increased from $5.05 million in the first quarter to $14 million.

09. Agriculture: despite contributing around 23% to Nigeria’s economy, the sector only attracted foreign capital of $21.72 million in the first half of 2024. In the second quarter of the year, capital importation fell to $5.91 million from $15.80 million in the first three months of the year.

08. Electrical: the power sector received $85.44 million in total capital imports in the first half of 2024. Capital importation to the sector dropped from $58.93 million in Q1 2024 to $26.51 million in the second quarter of the year.

07. Financing: this sector’s capital importation also dropped in the second quarter of the year when compared to the first quarter. In total, capital importation to the sector in the first half of the year stood at $115.99 million.

06. I.T Services: this sector saw a near 100% decline in capital importation in the second quarter of the year from $171.70 million in Q1, 2024. Total capital importation in the first half of the year was $172.44 million.

05. Shares: capital importation into shares in Nigeria in the first half of the year stood at $176.72 million. In the first quarter, capital importation to the sector reached $98.71 million and declined to $78.01 million in the second quarter.

04. Telecommunications: this sector’s capital importation declined from $191.57 million in the first quarter of the year to $113.42 million in Q2, 2024. Total capital importation between January and June was $304.99 million.

03. Production and Manufacturing: Despite the economic malaise bedeviling the sector, capital importation reached $816.62 million in the first six months of 2024. Unlike other sectors which saw a decline in capital importation in the second quarter, this sector increased its capital importation by 225% from $191.92 million in Q1, 2024 to $624.71 million.

02. Trading: this sector contributed 17.7% to the total capital importation in the first half of the year. Capital importation to this sector in the period under review reached $1.06 billion.

01. Banking: as usual, this sector consistently attracts the highest capital importation. In the first half of 2024, capital importation to the banking sector reached $3.19 billion. This represents around 53.36% of total capital importation in the period under review.

01. Banking: as usual, this sector consistently attracts the highest capital importation. In the first half of 2024, capital importation to the banking sector reached $3.19 billion. This represents around 53.36% of total capital importation in the period under review.