Korede Abdullah in Lagos
The National Bureau of Statistics (NBS) has reported a significant decline in foreign capital inflows from African countries, excluding Nigeria, in the third quarter of 2024.
According to the NBS, African investors contributed $285.11 million, accounting for 22.76% of the total foreign capital inflow into Nigeria. This represents a 43.73% decline compared to the second quarter of 2024 and a 16.77% decline year-on-year.
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 $97.63 million, despite a sharp decline of 61.05% from the previous quarter.
The Republic of South Africa contributed $185.03 million, representing a substantial year-on-year growth of 59.02%. Ghana and Morocco also emerged as minor contributors, recording $2.35 million and $0.10 million, respectively.
In contrast to the declining trends from other African countries, foreign capital inflow from Nigerian investors showed significant growth, increasing by 261.33% year-on-year to $10.84 million.
Europe remained the largest contributor to Nigeria’s foreign capital, driven by inflows from the United Kingdom and the Netherlands. The total foreign capital inflow into Nigeria declined by 51.89% to $1.25 billion in Q3 2024, representing a sharp contraction in foreign investments.
The NBS report highlights the significant role played by African nations in Nigeria’s capital importation landscape. However, the decline in inflows from Mauritius and South Africa has affected the continent’s overall share.
Europe and North America have shown steady performance, reinforcing their position as major foreign capital sources in Nigeria.
The notable rise in contributions from Nigerian investors highlights growing domestic investor confidence, suggesting a potential shift in the country’s capital dynamics. This trend may indicate a decreasing reliance on foreign capital and a growing emphasis on domestic investment.
The decline in foreign capital inflows may have implications for Nigeria’s economic growth and development.
However, the growth in domestic investment may provide a silver lining, suggesting that Nigerian investors are increasingly confident in the country’s economic prospects.
