Capital Importation into Nigeria Hits $8.48bn in Q1

James Emejo in Abuja

The total value of capital importation into the country stood at $8.48 billion in the first quarter of the year (Q1 2019), according to the National Bureau of Statistics (NBS).

The figure represented an increase of 216.03 per cent compared to the $2.14 imported in the fourth quarter (Q4) of 2018 and 34.61 per cent increase compared to the first quarter of 2018.

According to the Nigerian Capital Importation- Q1 2019 report, which was posted on the NBS website yesterday, the largest amount of capital importation by type was received through portfolio investment, which accounted for 84.21 per cent ($7.14 billion) of total capital importation.

This was followed by other investment, which accounted for 12.91 per cent or
$1. 09 billion of the total capital, as well as Foreign Direct Investment (FDI), which accounted for 2.86 per cent, amounting to $243.36 million of total capital imported in Q1.

When categorised by sector, the banking sector attracted $2.85 billion of the total capital imports in Q1.
Stanbic IBTC Bank Plc emerged at the top of capital investment into the country in Q1 with $3.60 billion.
This accounted for 42.50 per cent of the total capital inflow.

According to the report, the United Kingdom emerged as the top source of capital investment in the country with $4.53 billion, which accounted for 53.40 per cent of the total capital inflow in Q1.

Also, by destination of investment, Lagos State emerged as the top destination of capital investment with $4.77 billion, which accounted for 56.25 per cent of the total capital inflow into the country.
According to the statistical agency, capital importation had dropped to $2.14 billion in Q4,2018 compared to $2.85 billion in the preceding quarter.

However, the total value of capital importation in 2018 was valued at $16.81 billion, representing a growth of 37.49 per cent (year -on-year) when compared to the $12.22 billion recorded in 2017.

However, the Central Bank of Nigeria (CBN), recently put the value of total foreign capital flows into the country at $14.2 billion between January and May 2019.

According to the apex bank, Foreign Direct Investment (FDI) accounted for $2.87 billion, representing 20.18 per cent of the total amount.

CBN Director, Corporate Communications, Mr. Isaac Okorafor, had in a statement, stated that the increased capital Inflow for the period was contrary to a Reuters report which had indicated that the country’s FDIs slumped last year.