Business

Capital importation to Nigeria increases by over 500%

Published

6 years ago

May 12, 2018

Spread The News

The National Bureau of Statistics says the value of capital imported in the first quarter of 2018 recorded an increase of 594.03 per cent, year-on-year and a 17.11 per cent growth over the figure reported in the previous quarter.

Putting the total figures at $6,303.63, the NBS in a report released on Friday stated that the quarter saw a continuous growth in total capital importation into the country, making it the fourth consecutive quarterly increase since the second quarter of 2017.

The report, however, stated that the increase in capital inflow in the quarter under review was driven mainly by Portfolio Investment.

According to the bureau, Portfolio investment grew from 3,477.53 million dollars in the previous quarter to 4,565.09 million dollars, adding that the amount recorded accounted for 72.42 per cent of the total Capital Importation during the quarter.

It said since the second quarter of 2017, Portfolio Investment had been expanding faster than the other two categories. It added that Portfolio Investment was the largest component of the capital imported in the first quarter of 2018 at 35 per cent of total capital imported.

According to the report, Foreign Direct Investment and Other Investment accounted for 3.91 per cent and 23.67 per cent of total Capital Importation into the country in the quarter under review.

In the first quarter, the bureau reported that FDI stood at 246.62 million dollars, falling by 34.83 per cent from the figure reported in the previous quarter, and growing by 16.67 per cent on a year-on-year basis.

It stated that Foreign Direct Investment in Nigeria was still weak when compared to Portfolio Investment and Other Investment, representing only 3.9 per cent of total capital imported.

The report noted that Equity Investment, a sub-category under FDI contributed 246.61 million dollars or 99.9 per cent of FDI during the quarter, while Other Capital under FDI contributed less than 0.001 per cent.

Meanwhile, the report stated that Portfolio Investment remained the largest component of total capital inflow into Nigeria in the first quarter of 2018.

It said the total value of Portfolio Investment was 4.565.1 million dollars, which was 1,355.66 per cent growth compared to first quarter, 2017 and 31.27 per cent growth compared to the figure reported in the fourth quarter, 2017.