While the overall number – $3.376 billion – for capital importation by selected sectors in Nigeria shows a positive cue, the breakdown reveals that more needs to be done to enhance the economy.
According to the Nigerian Capital Importation – Q1 2024 report by the National Bureau of Statistics (NBS), the distribution of capital imported into Nigeria by sector in the first quarter of 2024 shows disparities.
Beyond the banking sector being the largest recipient of capital inflows, attracting $2.07 billion, 61.24% of the total capital imports for the quarter, the trading sector received $494.93 million, which accounts for 14.66% of the total capital imported.
This shows how important trading is in driving Nigeria’s economy growth, with investment emphasizing its importance in facilitating commerce and trade activities.
The production and manufacturing sector attracted $191.92 million, representing 5.68% of the total capital imports. A sector highly important for the country’s industrial growth and development, the capital inflow points to its prospect for future expansion and job creation.
While agriculture attracted $15.80 million (0.47%), the construction sector saw $0.61 million (0.02%) capital and electrical machinery received $58.93 million (1.75%).
The financing sector attracted $75.55 million (2.24%), and consultancy services saw a minimal $0.06 million (0.00%). IT services received $3.44 million (0.10%), and marketing saw $0.10 million (0.00%).
The oil and gas sector attracted $5.09 million (0.15%), telecommunications received $191.57 million (5.67%), while drilling received no capital inflow ($0.00 million, 0.00%). Lastly, the transport sector received $5.05 million (0.15%).
Despite the total capital importation for Q1 2024, which stood at $3.376 billion, the relatively small amounts directed towards agriculture, construction, and IT services signify areas that might benefit from targeted policy interventions and incentives to attract more investments in the future.
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