The total value of capital importation into Nigeria stood at $1.461 billion in the third quarter of 2020. This represents an increase of 12.86% compared to Q2 2020 ($1.294 billion) and a -74.03% decrease compared to the third quarter of 2019 ($5.627 billion).
This is according to the Nigerian Capital Importation report released by the National Bureau of Statistics (NBS).
The largest amount of capital importation by type was received through Other investment, which accounted for 43.75% ($639.44 million) of total capital importation, followed by Foreign Direct Investment (FDI), which accounted for 28.38% ($414.79 million) of total capital imported and Portfolio Investment which accounted for 27.87% ($407.25 million) of total capital imported in Q3 2020.
97.66% of the “other investments” were loans, which amounted to $624.45m, while the remaining 2.34% were categorized as “other claims.” Trade credits and currency deposits received zero funds during the period under review.
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Foreign Direct Investment rose by 179.15% QoQ and by 100.79% YoY. Equity investment accounted for all the FDI into Nigeria during the period under review.
Portfolio investment rose by 5.69% QoQ and down by 86.5% YoY. Money Market Instruments accounted for 89.17% ($363.15 million) of the portfolio investment in Q3 2020, with the remaining 10.82% ($44.10 million) going into equity. Bonds did not receive any funds.
In the first quarter of 2020, the total capital importation into Nigeria amounted to $5.854 billion. In the second quarter of 2020, Nigeria suffered a 77.88% decline in capital importation to $1.295 billion.
Since 2018, the largest capital importation into Nigeria – $8.508 billion, was recorded in the first quarter of 2019, with the lowest – $1.295 billion recorded in the second quarter of 2020.
Capital importation by sectors:
Capital importation by Production dominated in Q3 2020, reaching $400.09 million (27.38%) of the total capital importation in Q3 2020.
Production is closely followed by the Banking sector, which accounted for $384.40 million (26.03%).
Shares received $283.22 million, which represents 19.38%.
Telecomms received $101.18 million (6.92%) while Agriculture received $51.71 million (3.54%)
Oil and gas sector received $25.03 million (1.71%) while $4.09 million (0.28%) went into electrical.
BY: Ifunanya Ikueze