The National Bureau of Statistics (NBS) has said that Nigeria’s capital importation rose to $1.73 billion in the third quarter of 2021.
This represents a 98 per cent increase from the $875.6 million recorded in the preceding quarter (Q2 2021).
According to the NBS capital importation report, the increase recorded was due to the 120.8 per cent surge recorded in the country’s portfolio investment.
The report showed that foreign portfolio investments in the review period increased from $551.37 recorded in Q2 2021 to $1.2 billion.
A further breakdown of the report from the statistical bureau, shows that FPI (Foreign portfolio investments) accounted for 70 per cent of the total inflows recorded in the period, FDI (Foreign Direct Investments) at $107.8 million, accounted for just 6.2 per cent, while other investments with $406.4 million, represents 23.5% of the total foreign investments.
Despite the increase recorded in the review period, Nigeria’s capital importation is still significantly lower than pre-pandemic levels, averaging at $1.5 billion in 2021, compared to an average of $5.99 billion recorded in 2019 and $4.2 billion in 2018.
By sectors, capital importation into the financing sector had the highest inflow of $469.17 million amounting to 27.1 per cent of total capital imported in the third quarter of 2021. This was closely followed by the banking sector, which received $460.39 million (26.59%) and the production sector $323.83 million (18.70%).
Capital Importation by country of origin revealed that the United Kingdom ranked top as source of capital imported into Nigeria in the third quarter of 2021 with a value of $709.8 million accounting for 40.99 per cent of total capital imported in the period under review. This was followed by capital imports from South Africa and United States of America valued at $389.54 million (22.50%) and $257.12 million (14.85%) respectively.
By Destination of Investment, Lagos State remains the top destination of capital investment in Nigeria in Q3 2021 with $1.48 billion accounting for 85.57 per cent of total capital investment in Nigeria in the period under review. This was followed by investment into Abuja (FCT) valued at $249.19 million (14.39%).
By bank, Stanbic IBTC Bank Plc ranked highest in Q3 2021 with $537.92 million (31.07%) of total capital investment in Nigeria. This was followed by Standard Chartered Bank (18.83%) and Citibank Nigeria Limited (14.34%).
