Capital Importation Dropped to $1.57bn in Q1 as Only Six States Attracted Inflows

James Emejo

The total value of capital importation into the country declined by 28.09 per cent to about $1.57 billion in the first quarter of the year (Q1 2022) compared to $2.87 billion in the preceding quarter, according to the National Bureau of Statistics (NBS).

Compared to the corresponding quarter of 2021, capital importation also decreased by 17.46 per cent from $1.91 billion

The NBS, in its Capital Importation Report for Q1 2022, stated that portfolio investment, which accounted for 60.87 per cent or $957.58 million, accounted for the largest amount of capital importation by type.

Other Investment accounted for 29.28 per cent or $460.59 million while and Foreign Direct Investment (FDI) accounted for 9.85 per cent or $154.97 million of total capital imported in Q1.

According to the report which was posted on the NBS website, disaggregated by sectors, capital importation into banking had the highest inflow of $818.84 million amounting to 52.05 per cent of total capital imported in the first quarter.

This was followed by capital imported into the production sector, valued at $223.67 million or 14.22 per cent and the financing sector which accounted for $199.37 million or 12.67 per cent of total capital imports.

According to the statistical agency, capital importation by country of origin further showed that the United Kingdom ranked top as the source of capital imported into the country in the first quarter, accounting for $1.02 billion, representing 64.92 per cent of total transactions.

This was followed by the Republic of South Africa and the United States of America valued at $117.50 million or 7.47 per cent and $82.07 million or 5.22 per cent respectively.

However, THISDAY’s analysis of the report further indicated that only six states of the federation including the Federal Capital Territory (FCT) were able to attract foreign investments to their respective jurisdictions.

These included Lagos ($1.12 billion), FCT ($446.81 million), Anambra ($4.15 million), Oyo ($2 million), Plateau ($0.04 million), and Katsina ($0.70 million) in the period under review.