Economy

Nigeria’s Capital Import Drops By 48.21% To $2.85bn QoQ In Q3

The National Bureau of Statistics (NBS), on Tuesday released the 2018Q3 Capital Importation Report showing total value of capital imported into Nigeria stood at $2.855bn in the third quarter of 2018, representing a 48.21% decline when compared to the $5.51bn in 2018 Q2 and 31.12% drop from the $4.14bn of the third quarter of 2017.
At $1.723bn, portfolio investment remained the largest amount of capital received by type, representing 60.5% of total capital importation, followed by Other Investment, which accounted for $601.53m, or 21.07% of total capital, while Foreign Direct Investment FDI accounted for $530.63m, or 18.58% of total.
Comparatively, FDI, all of which was mostly equity investment, jumped quarter-on-quarter by 103.03% from $261.62m; and 351.23% year-on-year; while portfolio investment represented a 58.17% slump from $4.119bn, or 58.17% QoQ and 37.74% YoY. The lion’s share of this was in money market instruments which accounted for $1.291bn, down by 51.66% QoQ from $2.67bn; while growing 79.34% YoY. Equity investment followed with $394.47m, down 62.37% from $1.048bn in 2018Q2; and 79.58% YoY; just as investments in bonds at $37.48m suffered 90.63% QoQ decline from $400.14m; and 67.54% YoY.
A breakdown by sector showed that “capital importation as shares, which is closely related to Equity investment (FDI and Portfolio Investment) dominated the third quarter of 2018, reaching $1,667.76 of the total capital Importation in the quarter.”
It was followed from afar by financing, $371.6m; banking, $289.44m; production, $230.34m; as well servicing, $205.91m, among others.
According to the NBS reported, the United States emerged top source of capital investment in Nigeria in the third quarter of 2018 with $911.33m, accounting for 31.91% of total capital inflow in the period under review.
The UK followed with $871.147m; South Africa, $153.745m; Belgium, $144.843m; Netherlands, $135.066m; and United Arab Emirates, $125.212m.

Related Articles

Back to top button