Nigeria’s capital importation grew by 216% to $8.4bn in Q1 2019 – NBS

Motolani Oseni

The total value of capital importation into Nigeria in the first quarter of 2019 was estimated at $8.48 billion, representing an increase of 216.03per cent compared to Q4 2018 and 34.61 per cent increase compared to the first quarter of 2018, the latest data by the National Bureau of Statistics (NBS) has revealed.

The statics office in its latest data on capital importation indicated that the largest amount of capital importation by type was received through Portfolio investment, which accounted for 84.21 per cent ($7,145.98) of total capital importation.

Also, the second biggest capital importation was received through other Investments, accounting for 12.91 per cent or $1,096.15 million of total capital importation.

Foreign Direct Investment (FDI) accounted for the least of total capital importation in the first quarter with $243.36 million or 2.86 per cent of the total capital imported in 2019.

Further information provided revealed that by sector, capital importation by banking dominated Q1 2019 reaching $2,851.07 million of the total capital importation in Q1 2019.

The NBS had earlier in the year, disclosed that capital investments into Nigeria’s economy in the last three years stood at $34.364 billion.

This development was said to have been an indication that effort by the Federal Government to improve the business environment through Ease of Doing Business policy measures are yielding desired results.

The figures from the statistics office revealed that is 2016 the value of capital importation stood at $5.124 billion, rising to $12.238 billion in 2017 before reaching a whopping $16.812 billion in 2018.

A breakdown of the category by category basis showed that Portfolio investment accounted for the largest chunk of the capital imported to the country during the three-year period.

Specifically, Portfolio investment accounted for $1.812 billion in 2016, increasing to $7.329 billion in 2017 and $11.802 billion in 2018.

Further analysis of the composition of the Portfolio investment showed that in 2016, capital importation in the form of Equity stood at $859.06 million, Bonds $395.9 million and Money Market Instruments accounted for $557.9 million of the imported capital.

Similarly, Foreign Direct Investment (FDI), the most impactful investment on any economy was $1.044 billion in 2016 and comprised Equity with $1.043 billion value; and Other Capital, $0.88billion; during the year.

Other Investments, which comprised Trade Credits, Loans, Currency Deposits and Other Claims, totalled $2.27 million in 2016.

In 2017, Nigeria’s imported Portfolio investment rose to $7.329 billion, comprising Equity with $3.637 billion value; Bonds, $482.8 million; and Money Market Instruments totalled $3.208 billion.

During the year, the FDI grew to $981.7 million, comprising Equity of $979.44 million while Other Capital value stood at $2.32 million.

Nigeria’s capital importation from Other Investments in 2017 grew to $3.917 billion, comprising Trade Credits, $10.0 million; Loans, $3.164 billion; and Other Claims, $739.6 million.

In 2018, Portfolio investments attracted to the nation’s economy rose significantly to $11.802 billion, up from the $7.329 billion recorded in the preceding year. The portfolio investments comprised Equity value of $2.362 billion; Bonds, $966.82 million; and Money Market Instruments totalled $8.472 billion.

During the year in review, the imported FDI value rose marginally to $1.194 billion, from the $981.75 million recorded in 2017. The FDI comprised Equity with $1.189 billion value while Other Capital stood at $5.64 million.

The country’s Other Investments in 2018 indicated $3.815 billion importation which comprised Trade Credits totalling $6.97 million; Loans, $3.522 billion; Currency Deposits, $1.03 million; and Other Claims $284.75 million.