In the first half of 2023 (H1’23), the total foreign investments flowing into Nigeria’s manufacturing sector experienced a significant year-on-year increase of 88.17 percent, reaching $861.16 million, compared to $457.66 million during the same period in 2022 (H1’22). This surge also represents a 75.47 percent growth compared to the $490.76 million recorded in the second half of 2022 (H2’22), as reported by the National Bureau of Statistics (NBS) Nigeria Capital Importation for the second quarter of 2023 (Q2’23).
Additionally, the Manufacturers Association of Nigeria (MAN) reported an 8.1 percent increase in local manufacturers’ investments in the sector, measured in naira value. This figure rose to N192.89 billion in H1’23 from N178.39 billion in H1’22. MAN attributed this increase primarily to the depreciation of the naira in the second quarter of 2023 (Q2’23).
An analysis of the NBS data reveals that the Production/Manufacturing sector attracted the highest share of investments, accounting for 39.82 percent of the total capital importation into the country, which amounted to $2.163 billion in H1’23. Following this, the Banking sector received $499.14 million in investments, representing 23.07 percent, and the IT Services sector attracted $216.08 million, which equates to 9.99 percent of the total capital importation.