Business
Nigeria suffered lowest capital inflow in 2016 —Report
Nigeria’s total capital inflows, made up of foreign direct investments and loans, fell to all time low of 48.6% in 2016.
According to a report by an international monitoring agency, Meristem, a total of capital importation into Nigeria recorded the worst decline in 10 years in 2016 with only about $80.9 billion, covering capital international transactions, as compared with $90,5 billion in 2012 and $88.6 billion in 2013, all of which amounted to 48.6 per cent loss in the year under review.
A further breakdown indicates that the total capital importation for fourth quarter in 2016 was estimated at $1.55bn, compared to $1.82bn in the third quarter of 2016.
Other investments, says the report are made up of 44 per cent of capital inflows of $2.24bn in 2016, as against $1.66bn in 2015, while Foreign Direct Investment and Foreign Portfolio Investment into equities amounted to 20 per cent ($1.04bn) and 17 per cent ($859.05m) of inflows, respectively.
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“The instabilty suffered in the exchange rate of naira contributed in further lowering currency deposits. Trade credits and other claims contributed minimum growth in the inflows.
“Equally noticeable is the 63.5 per cent reduction in equity participation in most public assets when compared with cases in most developing economies of the world,” the report stated.
It says Nigeria’s fixed income market recorded more inflows in Q3 2016 compared to the equity market due to the hike in Monetary Policy Rate of 14 per cent in July 2016.
Although the total inflows into the fixed income space in 2016 declined by 29.24 per cent year-on-year, the analysts observed the increased participation in the space compared to other segments during the period of 19 per cent in 2016 against 13 per cent in 2015.
The report, on sectoral levels, stated that banking, oil/gas production/manufacturing and telecommunications services contributed less than a total of 20 percent in capital inflows during the period under review.
African countries, which recorded new inflows, included Mauritania, Seychelles and Tanzania.
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Balarabe musa
January 29, 2017 at 1:54 pm
I dont believe all this fake international monitoring group statistics or what ever they are called . Sometimes, they just based their statistics on bias.
seyi jelili
January 29, 2017 at 6:58 pm
You better believe. They are keen to unravel how the real economy of each country is. Our capital inflows is meagre compare to 2015 because so many big companies have left Nigeria to other countries. Why do you think big brother Nigeria was moved to south Africa.
Nonso Ezeugo
January 30, 2017 at 1:43 am
Because there is no fund anymore to continue the program and the Nigeria are lacking behind
Animashaun Ayodeji
January 29, 2017 at 2:04 pm
“a total of capital importation into Nigeria recorded the worst decline in 10 years in 2016,” we all know Nigeria’s economy was very bad in 2016, and still terrible in 2017, but, worst decline in 10 years is an exaggeration that cannot be accepted
Roland Uchendu Pele
January 29, 2017 at 6:52 pm
Exaggeration is a major part of economic commentary. Whatever adjective or form of illustration used to bring home the point doesn’t matter. The country is in its worst state at the moment.
That’s for sure.
chichi emerue
January 30, 2017 at 1:32 am
All will need is guideline to make this country a better place
Amarachi Okoye
January 30, 2017 at 1:48 am
If we are passing true all this things all this while what happen to other years that are coming. Buhari should create his own governance as abetter one. By making things right
Margret Dickson
January 29, 2017 at 2:08 pm
Thanks to Buhari, Kemi Adeosun and Godwin Emefiele for making Nigeria’s economy sink less than a year they took over power. Kudos to them for being ‘hardworking’
JOHNSON PETER
January 29, 2017 at 6:45 pm
You are just so a stupid citizen who knows nothing and thereby will never know how to appreciate good things. Sinking economy started in the days of pdp but we never knew because of camouflage but buhari revealed the true nature of our economy , so we can all see how bad it was, but thank be to God, the economy is getting shape gradually .
Joy Madu
January 30, 2017 at 1:27 am
You are foolish because you don’t know what you are saying. How can you say thank you to the men that are destroying this country. Be wise and stop acting like mumu