Top 10 sectors that attracted the most foreign investment to Nigeria in Q1 2024

Nigeria’s total capital imports increased by 210.16% in the first quarter of 2024, from $1.08 billion in the fourth quarter of 2023 to $3.37 billion.

This is according to the latest capital import report for Q1 2024, published on Monday by the National Bureau of Statistics (NBS).

Compared to the same quarter of 2023, the increase was 198.06% from1.13 billion, which shows the growing confidence of foreign investors in the Nigerian economy.

Nigeria’s economic sectors have shown mixed results in attracting foreign investment, with significant growth in key areas such as banking, trade and telecommunications.

Below are the 10 sectors that attracted the most foreign investment during this period:

#10 Transportation

The transportation sector recorded a modest investment of $5.05 million in Q1 2024, which marked a significant rebound from the minimal outlay of $0.14 million in Q4 2023. This 3,The 507.14% increase underlines the renewed interest in the sector. However, compared to the $12.94 million in Q1 2023, there was a 60.97% decline, indicating that the sector has not yet returned to previous levels of foreign investment.

#9 Agriculture

In the first quarter of 2024, agriculture attracted $15.8 million, a significant increase compared to the $0.42 million invested in the fourth quarter of 2023, an increase of 3%,An increase of 666.67%. This sector also saw a significant improvement from the $4.84 million of Q1 2023, reflecting an increase of 226.45%. The increase in investment indicates growing confidence in Nigeria’s agricultural potential.

#8 Electric

The Electricity sector received $58.93 million in Q1 2024, up 15.71% from $50.94 million in Q4 2023. Compared to $7.38 million in Q1 2023, the sector saw a remarkable increase of 698.24%. This increase overview of the most important events increasing demand for electrical infrastructure improvements.

#7 Financing

Investment in the financial sector fell to $75.55 million in Q1 2024 from $135.59 million in Q4 2023, a 44.29% decline. This is also lower than the $118.66 million recorded in Q1 2023, reflecting a 36.35% decline. Despite this, the sector remains a critical area for foreign investment, albeit with fluctuations.

#6 Shares

The equity sector attracted $98.71 million in Q1 2024, up from $51.45 million in Q4 2023, an increase of 91.86%. Compared to $88.51 million in Q1 2023, there was an increase of 11.52%. This suggests growing investor confidence in the Nigerian equity market.

#5 IT Services

IT services saw an impressive investment of $171.7 million in Q1 2024, up sharply from $9.08 million in Q4 2023, representing a 1% increase compared to Q1 2024.,An increase of 789.75%. However, this is a decrease of 20.52% compared to the USD 216.06 million in Q1 2023, which indicates some volatility in the interest of foreign investors in this sector.

#4 Telecommunications

The telecommunications sector received $191.57 million in Q1 2024, a slight decrease of 5.57% compared to $22.84 million in Q4 2023. However, it is an increase of 768.91% compared to $22.05 million in Q1 2023, reflecting significant growth and ongoing investment in Nigeria’s telecommunications infrastructure.

#3 Production/Manufacturing

The production and manufacturing sector attracted $191.92 million in Q1 2024, down 57.37% from $450.11 million in Q4 2023. This also represents a 25.05% decline from $256.12 million in Q1 2023, indicating a decline in investment, possibly due to economic uncertainty or operational challenges.

#2 Trade

Investments in Trading recorded a significant increase to USD 494.93 million in Q1 2024, from USD 66.34 million in Q4 2023, an increase of 645.92%. It is also a significant increase of 440.75% compared to USD 91.53 million in Q1 2023, which highlights the growth of the sector and its attractiveness to foreign investors.

#1 Banking

The banking sector led the pack with $2..07 billion in Q1 2024, which means a huge increase compared to USD 283.3 million in Q4 2023, which means an increase of 629.88%.

This is also a significant increase of 579.19% compared to the $304.56 million in Q1 2023. The banking sector’s solid performance underscores its critical role in Nigeria’s economic landscape and its strong appeal to foreign investors.