Foreign capital importation into Nigeria nosedived by 31.19% to $5.854 billion in the first quarter of this year relative to the corresponding period of last year as the coronavirus outbreak caused arrested investment in oil and gas, triggered volatility in the capital market and disrupted supply chains.
However, capital importation expanded by 53.97% quarter-on-quarter with portfolio investment accounting for $4.307 billion of the total sum, the statistics office said on Tuesday in its Nigerian Capital Importation report for Q1 2020.
Portfolio investment contributed 73.61% of the total capital importation, other investment accounted for 22.73% or $1.331 billion while foreign direct investment provided 3.66% or $214.25 million.
“The United Kingdom emerged as the top source of capital investment in Nigeria in Q1 2020 with $2,908.62m. This accounted for 49.68% of the total capital inflow in Q1 2020.
“By Destination of Investment, Lagos state emerged as the top destination of capital investment in Nigeria in Q1 2019 with $5,135.49m. This accounted for 87.72% of the total capital inflow in Q1 2020,” the document read in part.
Banking was responsible for the biggest capital importation by sector, accounting for $2.990 billion of the entire inflow.
“By Bank, Standard Chartered Bank Nigeria Limited emerged at the top of capital investment in Nigeria in Q1 2020 with $1,656.60m. This accounted for 28.30% of the total capital inflow in Q1 2020,” the report said.