NAIRAMETRICS
In the fiscal year of 2023, Nigeria saw a shift in foreign investment trends amid economic challenges, with a total capital importation of $3.9 billion, a noticeable decrease from the $5.3 billion recorded in the previous year.
This is also the lowest capital importation for Nigeria dating as far back as 2013 when the NBS started publishing data. For context, Nigeria attracted over $23 billion in capital importation in 2019.
Despite this downturn, certain sectors stood out for their ability to draw in capital, showcasing resilience and potential growth areas in the Nigerian economy.
Here we highlight the top ten sectors that attracted the most capital inflow in 2023, underscoring their significance to the nation’s economic landscape.
10. Agriculture Sector
Attracting $19.91 million, the Agriculture sector saw a decrease from $95.80 million. This sector is critical for Nigeria’s food security and employment, and the investment figures point to the need for increased focus to unlock its full potential.
9. Marketing Sector
The Marketing sector, with an inflow of $22.13 million, though not among the highest, showed an increase from $4.41 million, highlighting the growing importance of market research and advertising in the Nigerian economy.
8. Electrical Sector
Witnessing more than a threefold increase in capital inflow to $72.89 million from $22.96 million, the Electrical sector’s growth signifies a drive towards modernizing Nigeria’s power infrastructure and the growing demand for electrical components and services.
7. Telecomms Sector
The telecoms sector, despite experiencing a dip to $134.75 million from $456.83 million, remains a significant contributor to the nation’s capital inflow, reflecting the ongoing need for telecommunications expansion and digital connectivity.
6. I T Services
Notably, the I T Services sector saw a tremendous increase to $226.38 million from a modest $5.81 million, showcasing the burgeoning potential of Nigeria’s tech industry as a new frontier for investment and innovation.
5. Trading Sector
The Trading sector’s inflow stood at $237.52 million, slightly down from $265.35 million, suggesting that trade activities remain essential, with the movement of goods and services still attracting considerable investments.
4. Shares
The Shares sector received $294.08 million, a drop from $469.42 million in 2022, indicating a cautious approach from investors who are possibly waiting for more favorable market conditions before committing to equity investments in Nigerian companies.
3. Financing Sector
With an investment of $445.94 million, the Financing sector showed its pivotal role in facilitating economic growth, although it marked a decrease from $791.16 million in 2022. This sector remains critical for funding development projects and empowering other sectors through financial services.
