Foreign capital inflow dips to $875m

NBS

By Jeph Ajobaju, Chief Copy Editor

Foreign capital inflow to Nigeria reduced to $875.62 million in the second quarter of 2021 (Q2 2021), a 54 per cent dip compared with $1.91 billion in Q1 2021.

The falling trend goes back to full year 2020 (FY 2020) when capital importation slashed to $9.68 billion against $23.99 billion FY 2019.

Latest data from the National Bureau of Statistics (NBS) shows that the largest capital importation by type came through Portfolio Investment, which accounted for 63 per cent ($551.37 million) of the total in Q2 2021, per Vanguard.

This was followed by Other Investment with $246.27 million (28 per cent) and Foreign Direct Investment (FDI) $77.97 million (8.9 per cent).

The NBS said: “By sector, capital importation by Banking dominated in Q2’21 reaching $296.51 million of the total capital importation in Q2’21.

“The United Kingdom emerged as the top source of capital investment in Nigeria in Q2’21 with $310.26 million. This accounted for 35 per cent of the total capital inflow in Q2’21.

“By Destination of Investment, Lagos State emerged as the top destination of capital investment in Nigeria in Q2’21 with $780.06 million. This accounted for 89 per cent of the total capital inflow in Q2’21.

“By Bank, Stanbic IBTC Bank Plc emerged at the top of capital investment in Nigeria in Q2’21 with $310.21million. This accounted for 35 percent of the total capital inflow in Q2’21.”

Capital inflow declines by $14.31b in 2020

According to the NBS, foreign capital inflow reduced by $14.31 billion in FY 2020 to $9.68 billion or by -59.65 per cent against $23.99 billion in FY 2019.

Total value of capital importation in Q4 2020 was $1.06 billion, a decrease of -26.81 per cent compared with $1.46 billion in Q3 2020. It also showed a -71.87 per cent reduction in Q4 2020 against $ 3.802 billion in Q4 2019.

The largest amount of capital importation by type in Q4 2020 was in Other Investment, which attracted $783.26 million or 73.22 per cent of the total.

This was followed by FDI ($251.27 million) or 23.49 per cent, and Portfolio Investment ($35.15 million) or 3.29 per cent.

By sector, Shares dominated with $287.04 million.

The UK was the top source of capital inflow in Q 4 2020 with $236.88 million  (22.14 per cent), followed by Singapore $181.11 million, and the United Arab Emirates (UAE) $131.34 million.

In FY 2020, the UK also topped with $4.16 billion, trailed by the UAE ($899.44 million), the Netherlands ($890 million), South Africa ($871 million).

By Destination of Investment, Lagos State received the highest amount in Q4 2020 ($829.64 million) and in FY 2020 ($8.304 billion).

By Bank, Citibank led in Q4 2020 ($216.17 million) and in FY 2020 ($1.507 billion).

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