ECONOMY ATTRACTED $19.67BN INVESTMENTS IN NINE MONTHS — NBS
Between January and September this year, the Nigerian economy attracted a total of $19.67bn worth of investments, figures released by the National Bureau of Statistics have revealed. The NBS in its capital importation report, which was released on Monday, said the investments were from various sources.
They are Foreign Direct Investments made up of equity; portfolio investment made up of bonds and money market instruments; and other investments made up of trade credit, currency deposits and other claims. A breakdown of the $19.67bn investments showed that $8.48bn was attracted into the economy in the first quarter.
This was made up of $243.36m from the FDI, while portfolio and other investments attracted $7.14bn and $1.09bn respectively. For the second quarter, the NBS report stated that the economy attracted a total investment inflow of $5.82bn. The second quarter investments inflow represents a decline of $2.66bn when compared to the first quarter figure of $8.48bn.
The $5.82bn inflow was made up of FDI of $222.89m, portfolio investment of $4.29bn and others being $1.3bn. The report said the investment inflows into Nigeria declined by $460m from $5.82bn in the second quarter to $5.36bn in the third quarter.
The report said the largest amount of capital importation was received through portfolio investment, which accounted for $2.99bn, representing 55.88 per cent of total capital importation.
This was followed by other investment, which accounted for $2.16bn or 40.39 per cent of total capital, while FDI accounted for $200.08m or 3.73 per cent of total capital imported in the third quarter. The report reads in part, “The total value of capital importation into Nigeria stood at $5.36bn in the third quarter of 2019.
“This represents a decrease of 7.78 per cent compared to Q2 2019 and 87.99 per cent increase compared to the third quarter of 2018. “The largest amount of capital importation by type was received through portfolio investment, which accounted for 55.88 per cent ($2.99bn) of total capital importation, followed by other investment, which accounted for 40.39 per cent ($2.16bn) of total capital.”
In terms of sector, the report said investment inflows from banks dominated the third quarter with $1.75bn.mIt said the United Kingdom emerged as the top source of capital investment in Nigeria in the third quarter with $2.01bn. This, the report noted, accounted for 37.47 per cent of the total capital inflow during the period.
By destination of investment, the report said Lagos State emerged as the top destination of capital investment in Nigeria with $4.97bn. The NBS said this accounted for 92.71 per cent of the total capital inflow in the third quarter. By bank inflows, the report said that Stanbic IBTC Bank Plc emerged at the top of capital investment in Nigeria with $1.63bn. This accounted for 30.38 per cent of the total capital inflow in the third quarter.