The National Bureau of Statistics (NBS) has announced that African investors, excluding Nigeria, contributed a remarkable $285.11 million in foreign capital to Nigeria during the third quarter of 2024. This figure represents 22.76% of the total foreign capital inflow into the country, underscoring the influential role of African nations in Nigeria’s investment landscape.
However, recent analysis of the NBS’s capital importation report indicates a decline in the overall contributions from Africa when compared to both the second quarter of 2024 and the same period in the previous year. The $285.11 million capital inflow from Africa in Q3 2024 marks a significant 43.73% decrease from $506.68 million in Q2 2024, and a 16.77% year-on-year decline from $342.55 million in Q3 2023.
Key contributors from Africa in this quarter were Mauritius, South Africa, Ghana, and Morocco. Mauritius remained a principal source of foreign capital with an inflow of $97.63 million, though this figure shows a staggering 61.05% reduction from $250.70 million in Q2 2024. Year-on-year, Mauritius’s contribution dropped by 56.85% from $226.18 million in Q3 2023.
Conversely, South Africa’s investment stood at $185.03 million in Q3 2024, marking a substantial year-on-year increase of 59.02% compared to $116.37 million in Q3 2023. However, this also reflects a 27.73% decline from Q2 2024, where the contribution was $255.98 million. Ghana made a notable re-entry with a contribution of $2.35 million for the first time in recent quarters, while Morocco recorded a modest inflow of $0.10 million.
In contrast to the declining trend among other African countries, foreign capital inflow from Nigerian investors experienced substantial growth, contributing $10.84 million in Q3 2024, which is a striking 261.33% increase year-on-year from $3 million in Q3 2023, and a 198.63% surge from $3.63 million in Q2 2024.
While African investments accounted for 22.76% of Nigeria’s total capital inflow, the report noted significant contributions from other continents, particularly Europe, North America, and Asia. Europe continued to be the largest contributor, primarily due to inflows from the United Kingdom and the Netherlands. The UK contributed $502.6 million in Q3 2024, although this reflects a significant decline from $1.12 billion recorded in Q2 2024. The Netherlands contributed $121.92 million, down sharply from $577.82 million in Q2 2024, indicating a cautious investment environment.
From North America, the United States recorded a steady growth in investment, reaching $163.86 million in Q3 2024, up from $81.5 million in Q2 2024, indicating a resurgence in investor confidence.
In Asia, notable contributions came from Saudi Arabia, China, and Singapore. Saudi Arabia contributed $28.01 million despite a 48.65% decline from $54.55 million in Q2 2024. China’s inflows were slightly lower at $9.58 million, representing a 9.88% decline from the previous quarter. Singapore’s contribution of $5.63 million also saw a significant drop from $13.49 million in Q2 2024.
Overall, the NBS report illustrates a decline in total foreign capital inflow into Nigeria for Q3 2024, totaling $1.25 billion, marking a 51.89% decrease from $2.60 billion in Q2 2024. Despite a robust annual increase of 91.35% from Q3 2023, the drop in contributions from major African countries such as Mauritius and South Africa has impacted the continent’s overall share of investments.
The solid performance from Europe and North America reinforces their status as primary sources of foreign capital in Nigeria, while the remarkable increase in contributions from Nigerian investors signals a burgeoning domestic investor confidence, hinting at a potential shift in the capital dynamics within the country.
