Lagos Remains Top Destination for Investment Despite Drop in Capital Importation

Despite an overall 28.09 percent decrease in Capital Investment in Nigeria, Lagos State remains the number one destination for investments in Nigeria in the first quarter (Q1), 2022. 

In the quarter under review, capital investment into Lagos state stood at $1,119.44m, representing 71.16 percent of total capital investment into the country in Q1 2022.

According to the report obtained by Investors King from the National Bureau of Statistics (NBS), the total value of capital importation into Nigeria in Q1 2022 stood at $1,573.14m from $2,187.63m in the preceding quarter, showing a decrease of 28.09 percent. 

On a yearly basis, the capital importation decreased by 17.46 percent from $1,905.89m.  

The report showed that the most significant amount of capital importation by type was received through Portfolio Investment, which accounted for 60.87 percent ($957.58m). 

This was followed by Other Investment with 29.28 percent (US$460.59m), and Foreign Direct Investment (FDI) accounted for 9.85 percent ($154.97m) of total capital imported in Q1 2022. 

Breaking down the number into sectors, capital importation into banking was the highest at $818.84 million in the first quarter, amounting to 52.05 percent of total capital imported. 

Capital imported into the production sector came second at US$223.67 million (14.22 percent). The finance sector followed with $199.37m (12.67 percent).

Capital importation by country of origin shows that the United Kingdom ranked top as the source of capital imported into Nigeria in Q1 of 2022 with a value of $1.021.21m, accounting for 64.92 percent. 

This was followed by the Republic of South Africa and the United States of America, valued at $117.50m (7.47 percent) and $82.07m (5.22 percent), respectively.

In terms of Destination of Investment, the Federal Capital Territory, Abuja, comes second after Lagos with a value of $446.81m, representing 28.40 percent. 

Standard Chartered Bank of Nigeria imported the most fund at $543.20m (34.53 percent) while Citi Bank Nigeria Limited with $439.03m  (27.91 percent) and Stanbic IBTC Bank Plc came third with $251.52 (15.99 percent).