Nigeria’s capital importation in the second quarter of 2024 declined by 22.85% from $3.37 billion in the first quarter of the year to $2.60 billion.
This is according to the National Bureau of Statistics (NBS) Capital Importation report for the second quarter of the year.
However, when compared to the same period last year, Nigeria’s capital importation rose by 152.8% from $1.03 billion to the current figure.
In terms of capital imports by type, Portfolio Investment led with $1.40 billion, representing 53.93% of total capital importation, followed by Other Investment at $1.169 billion, making up 44.92%.
The foreign capital inflow into Nigeria in Q2 2024 paints a picture of a diverse range of international investors, each contributing to the country’s economic growth.
While some nations have scaled back, others have ramped up their investments, indicating shifting dynamics and the attractiveness of Nigeria as an investment destination.
Here is a detailed breakdown of the top countries where Nigeria received foreign capital in Q2 2024, according to the NBS report:
10. Belgium
In Q2 2024, Belgium’s investment in Nigeria amounted to $14.32 million, which represents a significant decline of 75.79% year-on-year compared to $59.15 million in Q2 2023. The slight quarter-on-quarter decrease of 2.91% from $14.75 million in Q1 2024 indicates a continued cautious approach by Belgian investors. The reduction may be due to economic uncertainties in Nigeria or strategic shifts in Belgium’s investment priorities.
9. Switzerland
Switzerland contributed $14.55 million in Q2 2024. This is a substantial increase compared to its absence in Q2 2023, reflecting renewed Swiss interest in Nigeria’s market. The investment also grew by 202.08% quarter-on-quarter from $4.80 million in Q1 2024, suggesting a strategic exploration of new opportunities in sectors such as finance.
8. Hong Kong
With a total investment of $15.47 million in Q2 2024, Hong Kong showed a significant year-on-year increase of 531.02% from $2.45 million in Q2 2023. This growth reflects a strengthening economic relationship between Asia and West Africa. The 91.19% rise from $8.09 million in Q1 2024 further indicates growing confidence among Hong Kong investors in Nigeria’s economic prospects.
7. Saudi Arabia
Saudi Arabia invested $54.55 million in Nigeria in Q2 2024, marking an extraordinary year-on-year increase from almost zero ($0.01 million) in Q2 2023. However, there was a decline of 41.04% from the $92.51 million recorded in Q1 2024. This suggests that while Saudi Arabia sees value in the Nigerian market, there may have been a strategic reassessment of its investments.
6. United States
The United States contributed $81.58 million in Q2 2024, reflecting a significant year-on-year decline of 70.01% from $271.92 million in Q2 2023. The quarter-on-quarter decrease of 8.61% from $89.27 million in Q1 2024 indicates a cautious approach by American investors, potentially driven by economic and policy uncertainties in Nigeria.
5. United Arab Emirates
In Q2 2024, the UAE’s investment in Nigeria amounted to $143.44 million. This reflects a 41.82% increase compared to $101.13 million in Q2 2023, highlighting strengthened economic ties between the two countries. The UAE also saw a quarter-on-quarter rise of 40.96% from $101.76 million in Q1 2024, suggesting continued interest in sectors like real estate and logistics.
4. Mauritius
Mauritius emerged as a significant investor in Nigeria in Q2 2024 with a total investment of $250.70 million. This represents a massive year-on-year increase of 1,369.94% from $17.05 million in Q2 2023. The quarter-on-quarter growth of 39.57% from $179.62 million in Q1 2024 indicates sustained confidence in Nigeria’s market, likely driven by financial services and regional partnerships.
3. Republic of South Africa
The Republic of South Africa contributed $255.98 million in Q2 2024, a year-on-year increase of 86.91% compared to $136.95 million in Q2 2023. However, there was a quarter-on-quarter decline of 56.05% from $582.34 million in Q1 2024. This suggests that while South Africa remains a key investor in Nigeria, the drop in Q2 2024 might reflect a shift in investment focus or a strategic reassessment.
2. Netherlands
The Netherlands invested $577.82 million in Nigeria in Q2 2024, representing an impressive year-on-year increase of 871.60% from $59.45 million in Q2 2023. The substantial quarter-on-quarter growth of 603.82% from $82.09 million in Q1 2024 indicates strong investor confidence in Nigeria’s economic potential, likely driven by opportunities in sectors such as energy and infrastructure.
1. United Kingdom
The United Kingdom was the largest source of foreign investment in Nigeria in Q2 2024, contributing $1.12 billion. This represents a significant year-on-year increase of 752.02% from $131.49 million in Q2 2023, highlighting the strength of the economic relationship between Nigeria and the UK. However, there was a quarter-on-quarter decline of 37.96% from $1.81 billion in Q1 2024, suggesting a more cautious investment stance amid Nigeria’s evolving economic conditions.
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