The CBN’s most recent data series on capital importation shows that the value of total capital imported into Nigeria increased by 27% m/m to almost USD352m in Nov ‘22. However, on a y/y basis, the value fell by -38% y/y. On a cumulative basis, November’s figure implies a total value of USD4.9bn for the 11M ’22 period, around -12% lower than the figure for the comparable period of 2021. The data was compiled by the CBN, using information on banking transactions from all registered financial institutions in Nigeria. The data are gross, and not adjusted for capital exports.

Other investments rose 2% y/y to c.USD201m in Nov ‘22, thanks to a 49% y/y increase in loans to USD175m. It was the largest source of capital importation into the country during the month, with a c.57% share of total.

Portfolio investments which declined -21% y/y to USD131m accounted for about 37% of total capital imported into the country in Nov ’22.

Its y/y decline was mostly because of a -45% y/y decrease in the value of capital inflow for money market instruments to USD84m. However, this was partially offset by a rise in portfolio inflows for bonds which increased to USD46m from USD3m in Nov ’21.

Foreign direct investments fell -90% y/y to USD20m and accounted for a paltry 6% of total capital inflow.

On a cumulative basis for the 11M ‘22, portfolio investments amounted to USD2.4bn, or a 49% share of total capital importation during the period.

Other investments, consisting mostly of loans totalled USD2.1bn or c.42.4%, while direct investments summed up to USD422m, representing a 9% share of total.

The top three sectors that attracted capital inflows were banking, finance, and production/manufacturing, with aggregate inflows of USD2.1bn, USD782m and USD673m respectively, over 11M ’22.

Looking ahead, we continue to see dim prospects for capital inflows in the very near-term due to tight global financial conditions and the recent stress within the US banking sector.