NIGERIA'S CAPITAL IMPORTATION UP 95.02% SECOND QUARTER, SAYS NBS

According to latest capital importation figures released by the National Bureau of Statistics, yesterday August 22, foreign investors confidence is recovering fast on the Nigerian economy particularly from the United Kingdom.

According to the figures for the quarter to June 2017, a total of $1,792.3m was imported into Nigeria as capital in the three months to June, representing 95.02% increase or $884.1m on the first quarter to March and 43.6% on 2nd quarter in 2016 when a total of $1042.2m was brought in.

May recorded the highest of the 3 months with $616.5m, followed by June with $612.6m then April with $563.3m.

According to the NBS, portfolio investment accounted for the bulk of the growth rising by 145.7%  to $770.5m when compared to quarter 1 while Other investments in flow came to $747.5m, up 95.02% on 1st quarter and foreign direct investment (FDI) accounted for $274.4m representing only 15.3% increase.

Thus, portfolio investment accounted for 43% of total imported within the quarter; Other investments 41.7% and FDI 29.8%.

Year on year, the growth recorded in portfolio investment was 128.4% compared to 43.6% for Other investment and FDI 48.9%.

The FDI was dominated by equity 99.9% or $274.1m out of the $274.4m and it also dominated portfolio investment accounting for 79.7% or $614.05m with money market instruments being responsible for $98.6m or 12.8%.

On the other hand, Other investments was principally through loans.

Hence, the highest single share of inflow by sector was share capital which grew by 548% on Q1 and 168% year on year to $932.8m. However, though representing the highest since the 3rd quarter of 2015, it is still far below almost $2bn and above $2bn in Q1 and Q2 of 2015 respectively.

Other major sectors with inflows were Oil and gas, $190.39m; Telecommunications $174.18m and servicing $145.56m. On the flip side, the sectors with lowest inflow were construction ($1.71m); Trading ($12.53m) and Agriculture ($23.73m)>

In terms of country of origin, the UK remained the one to beat since 2010 except in the two quarters of 2015 2nd half. In all, in the quarter under review, $696.7m or 38.8% came from the United Kingdom representing 130.3% growth on Q1 and 107.9% year on year.

The United States of America was next with $287.82m or 16.06% followed by Belgium (15.7%) and Singapore (8.67%).

Two African countries made the top 10 from which capital flowed into Nigeria within the Q2: Mauritius with $65.59m inflow and South Africa from which $51.03m came in. Widow's share also came in from the Republic of Benin $2.7m and Kenya $0.02m.

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