Nigeria’s capital inflows surged in October 2024 to $1.89 billion from the previous month of $0.40 billion.
The surge was driven primarily by a boost in portfolio investments, which soared by 403.57 percent to $1.41 billion as investors increased their purchases in equity and money market instruments.
The Central Bank of Nigeria (CBN) attributed this sharp rise in capital inflows to growing confidence in Nigeria’s financial markets.
Foreign direct investment (FDI) grew by 350 percent to $0.18 billion, while other investments such as loans grew by 275 percent to $0.30 billion.
“The partnership with the Dangote Refinery is poised to have a transformative impact on Nigeria’s oil and gas market. By ensuring a stable and affordable supply of fuel products across the over 1,000 retail outlets of the two companies, the agreement will help alleviate the recurring issue of fuel scarcity that has long plagued Nigeria,” the CBN stated.
Sectoral analysis of the capital inflows showed that the banking sector accounted for 49.21 percent of the total capital inflow.
This was followed by the financial sector with 26.12 percent.
Other sectors, including production and manufacturing, secured 9.72 percent, brewing 5.55 percent, and telecommunications 4.65 percent.
Portfolio investments accounted for 74.65 percent of the total capital inflows, according to the CBN portfolio report.
Further breakdown of the report showed that the United Kingdom was the dominant source of capital inflows and contributed 54.80 percent of the total.
The United States accounted for 13.89 percent while other countries like the Netherlands, South Africa, Singapore, and Mauritius also contributed.
According to the report, Lagos State and the Federal Capital Territory were the primary recipients of foreign capital inflow with the Lagos receiving 55.23 percent and the Federal Capital Territory securing 44.77 percent of the total capital inflows.
