The Nigerian banking industry attracted $1.47 billion as capital inflows in the first half of 2022, an increase of 109.8% compared to $698.2 million received in the second half of last year and 46.5% higher than the $1 billion inflows recorded in the corresponding period of 2021.
This is according to data from the Central Bank of Nigeria (CBN). The banking sector recorded the highest foreign inflow compared to other sectors in the Nigerian economy; accounting for 47.1% of the inflows into the country. The manufacturing and financing sectors followed with $457.7 million and $396.7 million respectively.
Meanwhile, a total of $3.11 billion in capital was imported into the Nigerian economy as foreign inflows; between January and June 2022, most of which were in form of foreign portfolio investments. In contrast to the first half of last year, foreign inflows grew by 11.8%, however, when compared to the second half of 2021, it declined by 20.7%.
Capital inflows into the country recorded a significant decline in the second half of 2020; following the covid-19 pandemic. Which triggered a downturn in the global economy, with investors wary of moving their monies to the African giant. However, since the second half of 2021 inflows have begun to pick up, albeit still very low compared to pre-pandemic levels.