Capital importation grows by 54% to $5.9bn in Q1’20

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By Elizabeth Adegbesan

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The value of capital importation into the country grew quarter on quarter (QoQ) by 54 percent to $5.9 billion in the first quarter of the year (Q1’20) from $3.8 billion recorded in the fourth quarter of last year (Q4’19).

The National Bureau of Statistics (NBS) disclosed this yesterday in its Q1’20 Capital Importation Report.

The bureau noted that year-on-year (YoY) capital importation into the country declined by 31.2 percent when compared with $8.5 billion recorded in Q1’19.

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According to the report, the largest amount of capital importation by type was received through portfolio investment ($4.3 billion).

On classification by sector, capital importation by banking dominated with Standard Chartered Bank Nigeria Limited leading capital investment in Nigeria with $1.7 billion inflow in Q1’20.

The report stated:”The total value of capital importation into Nigeria stood at $5,854.38m in the first quarter of 2020. This represents an increase of 53.97 percent compared to Q4 2019 and -31.2 percent decrease compared to the first quarter of 2019.

“The largest amount of capital importation by type was received through Portfolio investment, which accounted for 73.61 percent ($4.31 billion) of total capital importation, followed by Other Investment, which accounted for 22.73 percent ($1.3 billion) of total capital, and then Foreign Direct Investment FDI, which accounted for 3.7 percent ($214.25 million) of total capital imported in Q1’20.

“By sector, Capital importation by banking dominated Q1 2020 reaching $2.99 billion of the total capital importation in Q1’20.

“The United Kingdom emerged as the top source of capital investment in Nigeria in Q1’20 with $2.9 billion. This accounted for 49.7 percent of the total capital inflow in Q1’20.

“By Destination of Investment, Lagos state emerged as the top destination of capital investment in Nigeria in Q1’19 with $5.14 billion. This accounted for 87.7 percent of the total capital inflow in Q1 2020.

“By Bank, Standard Chartered Bank Nigeria Limited emerged at the top of capital investment in Nigeria in Q1 2020 with $1.7 billion. This accounted for 28.30 percent of the total capital inflow in Q1’20.”

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