Capital Importation Declines by 32.42% in Q4, 2019

• Capital Importation Declines by 32.42% in Q4, 2019

The total value of capital imported into Nigeria in the fourth quarter of 2019 declined by 32.42 percent to $3.802 billion, according to the National Bureau of Statistics (NBS).

The report shows the total value of capital imported in the third quarter of the year stood at $5.626 billion before declining by 32.42 percent to $3.802 billion in the fourth quarter of the same year but it was 77.67 percent higher than the same quarter of 2018.

In 2019, a total value of $8.508 billion was imported in the first quarter while $6.052 billion capital was imported in the second quarter, bringing the total imported capital in the year to $23.990 billion.

The report also noted that the United Kingdom invested the most in Nigeria during the period under review, the newly free country invested $11.01 billion in 2019.

This was followed by the United States of America with $4.694 billion. The Republic of South Africa, Mauritius, United Arab Emirates, Belgium, Netherlands and Zambia invested $2.351 billion, $644 million, $790.7 million, $595.55 million, $607.22 million and $85.35 million, respectively.

Lagos was the most attractive city to investors during the year under review, attracting a total investment value of $17.672 billion while Abuja attracted $6.208 billion.

The largest amount of capital importation was received through the Foreign Portfolio Investment (FPI), followed by Other Investment and Foreign Direct Investment (FDI).

Weak capital importation amid low oil prices could hurt Nigeria’s ability to finance import bills and dollar liquidity, especially with the foreign exchange reserves declining from $45 billion in June 2019 to $36.2 billion in March.