Nigeria skilled a considerable decline of 59.84% in international capital from BRICS nations throughout the third quarter of 2023, in accordance with the Capital Importation report by the Nationwide Bureau of Statistics (NBS).
A quarterly evaluation reveals that capital influx dropped from $239.18 million in Q2 2023 to $96.04 million in Q3 2023 representing a 60.35% lower. There may be additionally a yearly lower of 17.57% from $116.51 million recorded in the identical quarter of the earlier 12 months.
BRICS, comprising Brazil, Russia, India, China, and South Africa, witnessed a lower in capital influx to Nigeria. Nigeria has been eyeing membership in BRICS as a part of its international coverage agenda to amplify its affect on the worldwide stage.
Nevertheless, BRICS expanded by inviting six different nations, together with Saudi Arabia, Iran, Egypt, Argentina, Ethiopia, and the United Arab Emirates, skipping Nigeria. Out of the invited nations, Argentina turned down the invite whereas the remaining the remaining five became members officially on January 1, 2024 But Nigeria stays dedicated to its push for BRICS membership inside the subsequent two years.
UAE leads capital import supply to Nigeria
Regardless of the visa ban on Nigeria since October 2022, the United Arab Emirates (UAE) emerged as a number one supply of capital import, contributing $48.78 million, roughly 50.79% of the whole capital import from BRICS nations.
Out of the ten nations within the BRICS group, Nigeria acquired international capital from solely 5, particularly China, India, South Africa, Saudi Arabia, and the UAE.
Nigeria acquired $34.03 million from South Africa, $11.12 million from China, $1.70 million from India and $0.14 million from Saudi Arabia in Q3 2023.
Extra Insights
- The general international capital influx into Nigeria witnessed a significant drop, totalling $654.65 million in Q3 2023. International Direct Funding (FDI) represented solely 0.091% of the whole capital imported, regardless of authorities efforts to draw investments.
- One of many top economic deals by President Bola Tinubu in 2023 was with Saudi Arabia when the federal government of the Gulf State pledged to help Nigeria with its FX obligations in addition to put money into the nation’s refinery rehabilitation course of.
- Regardless of the challenges mirrored within the present capital importation report, optimism is directed towards the potential optimistic influence of international funding pledges secured by Nigeria President throughout abroad journeys, which reportedly amount to over $15 billion in Foreign Direct Investment (FDI) across various sectors.
- As Nigeria navigates its financial panorama, the outlook stays contingent on the conclusion of those pledges and concerted efforts to boost international capital inflows, together with the aspiration to affix the BRICS group.
