The total value of inflow of foreign capital into the Nigerian economy in the second quarter of this year crumbled by 77.88% relative to the first quarter, the National Bureau of Statistics (NBS) said on Friday.
The country’s Q2 2020 foreign capital inflow figure, which stood at $1.295 billion, fell by 78.60% from the one recorded in the corresponding period of 2020 as Africa’s biggest economy takes a double whammy from a record crash in the price of oil, its top export commodity, and the coronavirus pandemic.
The largest amount of capital importation by type was received through Other investment, which accounted for 58.77% ($761.03m) of total capital imported, followed by Portfolio “Investment, which accounted for 29.76% ($385.32m) and Foreign Direct Investment (FDI), which accounted for 11.47% ($148.59m) of total capital imported in Q2 2020,” the statistics office said in its Nigerian Capital Importation Q2 2020 Report.
On sectorial basis, capital importation by shares dominated in Q2 2020, accounting for $465.57 million of the entire capital importation in the period.
The biggest source of capital investment to Nigeria was the United Kingdom, which provided $428.83 million or 32.12% of the nation’s foreign capital inflow.
Lagos State was the number one destination of capital investment, accounting for as much as $1.130 billion or 87.30% of Nigeria’s capital information figure.
By bank, Standard Chartered emerged at the top of capital investment in Nigeria at $425.21 million, translating to 32.84%.
Foreign Direct Investment, which constituted $148.590 million of the Q2 2020 figure, contracted by 30.65% quarter on quarter (QoQ) and 33.41% year on year (YoY).
Portfolio Investment, however, accounted for $385.32 million of the foreign capital inflow figure for the period, falling by 91.06% QoQ and 91.14 YoY. Of this, money market instruments made up $332.07 while equity was responsible for the rest $53.25 million.
Other Investment totalled $761.03 million, declining by 42.81% QoQ and 48.60% YoY. This category comprised Loans ($726 million) and Other Claims ($35.04 million).
- NSE: Market closes bigger on improving investors’ confidence - September 28, 2020
- Oil prices dip as coronavirus cases surge dims prospect; Bonny Light gains $0.13 - September 28, 2020
- Nigerian govt to privatise NNPC, scrap major oil & gas regulatory agencies under proposed bill - September 28, 2020