Capital Importation Rises by 54% to $5.85bn in Q1

0

James Emejo in Abuja

The total value of capital importation into the country rose to $5.85 billion in the first quarter of the year (Q1 2020), representing an increase of $2.05 billion when compared to $3.80 billion in the preceding quarter, according to the National Bureau of Statistics (NBS).

This represented an increase of 53.97 per cent compared to Q4 2019 and a contraction by 31.19 per cent when compared to the $8.50 billion recorded in Q1 2019.

According to the Nigerian Capital Importation – Q1 2020 report released yesterday, portfolio investment accounted for the largest share of capital importation with 73.61 per cent of $4.30 billion of total inflows, followed by other investment, which accounted for 22.73 per cent of $1.33 billion of the total share.
On the other hand, Foreign Direct Investment (FDI) represented 3.66 per cent of $214.25 million of total capital imported in Q1.

The United Kingdom emerged as the top source of capital investment in Nigeria in Q1 with $2.90 billion, representing 49.68 per cent of the total capital inflow.
By sector, capital importation by the banking sector dominated Q1, reaching $2.99 billion of the total capital inflow.
Standard Chartered Bank Nigeria Limited emerged at the top of the capital investment in the country with $1.65 billion, representing 28.30 per cent of the total capital inflow in the period under review.

Also, Lagos State emerged as the top destination of capital investment in the country with $5.13 billion, which accounted for 87.72 per cent of the total capital imports.
According to figures by the NBS, only seven states and the Federal Capital Territory (FCT) accounted for the $5.85 billion capital importation in Q1.

The FCT recorded $706.81 million; Kaduna $1.98 million; Lagos $5.13 billion; Niger $4.96 million; Ogun $1.70 million; Sokoto $2.50 million; Kano $700,000 and Akwa Ibom $240,000.
However, quarter-on-quarter, FDI grew by 16.71 per cent and 13.39 per cent year-on-year.
Portfolio investment also grew by 128.79 per cent compared to the preceding quarter and 39.36 per cent year on year.
Investment in bonds recorded 388.23 per cent growth quarterly, but grew by 59.23 per cent when compared to Q1 2019.

Also, investment in money market instruments increased by 131.93 per cent compared to 41.55 per cent year on year.
In 2018, the total value of capital importation into Nigeria stood at $16.81 billion compared to $12.22 billion capital imported in 2017.

NBS had said the figures represented 37.49 per cent growth year-on-year.
However, the bureau said Nigeria recorded a decline in the total value of capital importation into the country in the fourth quarter, 2018 which stood at $ 2.14 billion.

According to the report, the total capital value represents a decrease of 25.05 per cent compared to the third quarter, 2018 and 60.24 per cent decrease compared to the fourth quarter of 2017.
Capital importation can be divided into three main investment types: Foreign Direct Investments (FDIs), Portfolio Investments and Other Investments.