The total value of capital importation into Nigeria stood at $1,294.94 million in the second quarter of 2020. This represents a decrease of -77.88% compared to Q1 2020 and -78.60% in Q2 2019.
Loans, which is under the category of “Other investments” accounted for 56.06% ($726 million) of the total capital importation into Nigeria in Q2 2020 and it is up by 29.69% QoQ, however, it is down by 31.96% YoY.
The largest amount of capital importation by type was received through “Other investment” (its major component is loans), which accounted for 58.77% ($761.03 million) of total capital imported, followed by Portfolio Investment, which accounted for 29.76% ($385.32 million) and Foreign Direct Investment (FDI), which accounted for 11.47% ($148.59 million) of total capital imported in Q2 2020.
Breakdown of the $1,294.94 Capital Importation
- Foreign direct investment (FDI) – $148.59 million, comprising of only equity. FDI declined by 30.65 QoQ and 33.41% YoY.
- Portfolio investment – $385.32 million, down by 91.06% QoQ and 91.14% YoY. Portfolio investment comprises of Equity (%53.25) and Money market instruments ($332.07).
- Other Investments – $761.03 million down by 42.81% QoQ and 48.60% YoY. The major component of “other investments” is loans ($726 million) which accounted for 95.4% whereas other claims accounted for just 4.6%.
By sector, Capital importation by Shares dominated in Q2 2020 reaching $464.57 million of the total capital importation in Q2 2020.
The United Kingdom emerged as the top source of capital investment in Nigeria in Q2 2020 with $428.83 million. This accounted for 33.12% of the total capital inflow in Q2 2020.
By Destination of Investment, Lagos state emerged as the top destination of capital investment in Nigeria in Q2 2020 with $1,130.49 million. This accounted for 87.30% of the total capital inflow in Q2 2020.
By Bank, Standard Chartered Bank Nigeria Limited emerged at the top of capital investment in Nigeria in Q2 2020 with $425.21 million. This accounted for 32.84% of the total capital inflow in Q2 2020.