Nigeria’s manufacturing sector recorded a 88.17% Year-on-Year increase in total capital inflow in the first half of 2023, according to data from the National Bureau of Statistics (NBS).
The figures revealed a surge from $457.66 million in H1’22 to $861.17 million in H1’23.
The manufacturing sector’s share of the total capital inflow for the six-month period rose significantly from 14.73% in H1’22 to 39.81% in H1’23, marking a 25.08 percentage point increase.
The total capital importation for H1’23 reached $2.163 billion.
In the second quarter of 2023, inflow through the sector increased Quarter-on-Quarter by an impressive 136.2%, reaching $605.04 million compared to $256.12 million in Q1’22.
This accounted for 58.73% of the total capital imported in Q2 2023.
The manufacturing sector outpaced others, with the banking sector following closely with an inflow of $499.14 million.
Ayorinde Akinloye, an economic and investment strategist, expressed surprise at the surge, suggesting it might be an outlier.
He pointed out that specific factors, such as the importation of significant equipment, could have contributed to the increase.
While some experts believe sustaining this trend may be challenging due to existing economic challenges, including forex issues and a difficult business operating environment, Chinazom Izuora, Senior Associate at Parthian Securities Limited, emphasized the need for Nigerian producers to focus on exports to enhance dollar supply and strengthen the economy.