Nigeria’s 2019Q3 Capital Inflow Up 87.9%, Hits $5.36bn

30 States Records zero Inflows, As Lagos Snaps 92.71%

Nigeria’s National Bureau of Statistics (NBS), on Monday, published the country’s capital importation report for the third quarter ended September 30, which at $5.367bn, grew 87.9% year-on-year, over the $2.855bn reported in the corresponding period of 2018.
The import level was however 7.7% less than the $5.82bn reported in the preceding quarter.
At $2.999bn, portfolio investment was the largest amount of total capital importation by type received, accounting for 55.88%, representing 30.13% grew quarter-on-quarter, and 74.08%. It was followed by other investments amounting to $2.167bn, an increase of 66.2% quarter-on-quarter and 260.41% year-on-year; while foreign direct investment for the period aggregated $200.08m, representing 62.29% YoY, and 10.23% QoQ rise.
A breakdown of the inflow by way of portfolio investment during the period under review showed that money market instruments pooled $2.549bn, an increase of 26.73% QoQ and 97.48% YoY; followed by the $358.19m from equity segment, which rose 27.91% QoQ and 9.20% YoY; while capital importation into the bonds segment climbed 71.40% QoQ and 144.42% YoY to $91.6m in the third quarter.
For other investment, which accounted for 40.39% of total capital, the highest inflow was seen in loans, at $1.774bn, representing a 99.21% QoQ growth and 216.24% YoY climb; followed from afar by the $393.1m inflow from other claims that increased by 1,056.22% YoY and 4.9% QoQ; while trade credits and currency deposits recorded zero inflows.
For Foreign Direct Investment FDI, which at $200.08m, accounted for 3.73% of total capital imported in Q3 2019, the lion’s share flowed in by way of the $196.38m, an 11.89% increase QoQ and 62.99% YoY; just as “other capital” accounted for $3.7m.
By sector, capital importation by banking dominated Q3 2019 at $1.756bn of the total capital importation in the period under review, followed by financing, $1.476bn; telecoms and capital market followed by $884.85m and $774.69m respectively, among others. While capital importation into the banking sector accounted for 32.74%, financing amounted to 27.51%; telecoms, 16.94%; and shares, 14.44%, among others.
The United Kingdom emerged as the top source of capital investment inflows to Nigeria in Q3 2019 with $2.011bn, representing 37.47% of the total; ahead of the $1.232bn from the U.S; with South Africa accounting for $708.77m.
Lagos retained its position as the prime destination for investment inflows in the country with its $4.976bn, accounting for 92.71% of the total. While Abuja came a distant second with its $381.19m, 30 states recorded zero capital inflow, as only Edo, Kano, Kaduna, Ogun, Rivers, and Oyo, recorded very marginal inflow.
By bank, Stanbic IBTC Bank Plc remained the most significant receiver of capital investment in Nigeria with $1.63bn, accounting for 30.38% of the total capital inflow in Q3 2019; ahead of Ecobank Nigeria’s $754.38m; followed by the $502.47m through Standard Chartered Bank. Access Bank was next with $447.55m and $350.95m by Citibank.