The total value of capital importation into Nigeria has fallen to $875.62 million in the second quarter (Q2) of 2021, according to the latest report by the National Bureau of Statistics (NBS).
The report titled, ‘Nigerian Capital Importation (Q1 & Q2 2021),’ released on Tuesday, shows a 54.06 percent drop compared to the $1.91 billion in the first quarter (Q1) of 2021.
The report says, “The largest amount of capital importation by type was received through portfolio investment, which accounted for 62.97% ($551.37m) of total capital importation.
“It is followed by other investments, which accounted for 28.13% ($246.27m) of total capital imported and Foreign Direct Investment (FDI), which accounted for 8.90% ($77.97m) of total capital imported in Q2 2021.”
By sector, capital importation into the banking industry dominated in Q2 reaching a total of $296.51 million, followed by financing with $205.88 million and shares with $194.59 million. In both Q1 and Q2, brewing, fishing, hotels, tanning and weaving sectors had no record of capital imports, the report added.
Similarly, only Lagos, Ogun and the federal capital territory (FCT) recorded capital inflows across Nigeria in Q2.
Lagos state emerged as the top destination of capital investment in the second quarter with $780.06 million, Abuja had $95.26 million, while Ogun had $0.3 million.
By banks, foreign firms emerged as the top capital investment in Nigeria in Q2. Stanbic IBTC recorded $310.21 million, Standard Chartered was second with $282.37 million, then Citibank ($94.15 million).
The report also stated that “the United Kingdom emerged as the top source of capital investment in Nigeria in Q2 2021 with $310.26m”.
In 2020, Nigeria’s capital importation plunged by 59.65 percent at $9.68 billion – the lowest level in four years.