- Nigeria’s Capital Inflow Drops by 7.8% in Q3, 2019
The total value of capital imported into the Nigerian economy in the third quarter of 2019 stood at $5.37 billion, the National Bureau of Statistics (NBS) reported.
This was 7.78 percent lower than the second quarter and 87.99 percent more than the same period of 2018.
According to the report, Portfolio investment received the largest amount of capital during the period, accounting for 55.88 percent or $2.999 billion of the total capital imported. This was 30.13 percent lower than the second quarter but 74.08 percent higher than the corresponding period of 2018.
This was followed by Other Investment which accounted for 40.39 percent or $2.167 billion of the total capital that was imported. On a quarterly basis, this grew by 66.20 percent when compared to the second quarter of 2019 and 260.41 percent year-on-year.
The Foreign Direct Investment (FDI) came third with $200 million or 3.73 percent of the total fund imported into the economy during the quarter. FDI declined by 10.23 percent quarter-on-quarter and 62.29 percent year-on-year.
A further breakdown shows the banking sector received the most money during the third quarter, $1.75 billion of the total fund imported.
While Stanbic IBTC Bank Plc led local lenders as the largest facilitator, receiving $1.63 billion or 30.38 percent of the total capital inflow during the period.
The United Kingdom emerged the number one source of capital investment in Nigeria with $2.01 billion or 37.47 percent of the total amount imported. Suggesting that the United Kingdom has started improving its business relations with Nigeria ahead of Brexit. Prime Minister Boris Johnson had said the embattled nation is looking to form new alliances and forged a new sovereign path.
However, Lagos remained a top investment destination for foreign investors as they invested $4.976 billion or 92.71 percent of the total capital inflow in the nation’s commercial hub.
