Nigeria’s Q3 2024 Foreign Capital Inflow

Overview of Foreign Capital Inflows in Nigeria: Q3 2024 Analysis

In the third quarter of 2024, the National Bureau of Statistics (NBS) reported that African investors, excluding Nigeria, contributed 22.76% of the total foreign capital imported into the country. This amounted to $285.11 million, underscoring Africa’s crucial role in Nigeria’s capital importation. However, the figures reflect a significant decline compared to previous quarters.

Decline in African Contributions

African investors’ contributions fell by 43.73% from the second quarter of 2024, which recorded $506.68 million. Year-on-year, there was a 16.77% drop from $342.55 million in Q3 2023. This downward trend invites scrutiny of the economic dynamics influencing African investments in Nigeria and within the continent.

Key Contributors

1. Mauritius: The top contributor from Africa brought in $97.63 million, though this marked a steep decline of 61.05% from $250.70 million in Q2 2024 and a 56.85% year-on-year drop from $226.18 million in Q3 2023.
2. South Africa: Despite a quarter-on-quarter drop of 27.73% from $255.98 million in Q2 2024, South Africa saw a strong 59.02% year-on-year growth from $116.37 million in Q3 2023, contributing $185.03 million in total.
3. Ghana: After a hiatus, Ghana made a notable contribution of $2.35 million, signaling renewed interest in Nigeria’s investment market.
4. Morocco: Contributed a modest $0.10 million, reflecting minimal involvement compared to other African nations.

In stark contrast to the declining trends among other African investors, Nigerian investors displayed remarkable growth. Their contributions reached $10.84 million in Q3 2024, an impressive 261.33% year-on-year increase from $3.00 million in Q3 2023. Quarter-on-quarter, Nigerian contributions rose by 198.63% from $3.63 million in Q2 2024.

Total Foreign Capital Inflows: Q3 2024

The total foreign capital inflow into Nigeria for Q3 2024 stood at $1.25 billion, a sharp decline of 51.89% from the $2.60 billion recorded in Q2 2024. Nonetheless, this figure represents a 91.35% annual increase from $652.82 million in Q3 2023, showcasing the volatility yet potential for growth in Nigeria’s capital market.

Contributions from Other Continents

While Africa accounted for a smaller share, other continents provided substantial inflows:

1. Europe: Dominated by the United Kingdom and the Netherlands.
2. United Kingdom: Contributed $502.60 million, down from $1.12 billion in Q2 2024, reflecting cautious investor sentiment.
3. Netherlands: Contributed $121.92 million, sharply down from $577.82 million in the previous quarter.
4. North America: The United States led with $163.86 million, doubling its Q2 2024 contribution of $81.58 million.
5. Asia:

Saudi Arabia: Contributed $28.01 million, down 48.65% quarter-on-quarter.

China: Recorded inflows of $9.58 million, slightly lower than its Q2 figure of $10.63 million.

Singapore: Added $5.63 million, representing a significant decline from Q2 2024.