ECONOMY ATTRACTED $21.8BN INVESTMENTS IN ONE YEAR – NBS
Within a one-year period covering October 2018 and September 2019, the Nigerian economy attracted a total of $21.81bn worth of investments, figures released from the National Bureau of Statistics have shown. The investments inflow, according to an analysis of the NBS capital importation report, came from various sources. They are foreign direct investments made up of equity; portfolio investment comprising bonds, money market instruments; and other investments made up of trade credits, currency deposits and other claims.
A breakdown of the $21.81bn investments showed that the sum of $2.14bn was invested in the economy in the fourth quarter 2018. A breakdown of the $2.14bn showed that about $156m came in through foreign direct investments, while $1.39bn and $589.32m came in through portfolio investments and other investment types respectively. In the first quarter of last year, the analysis of the report showed that the sum of N8.48bn was attracted into the economy.
This is made up of $243.36m from the FDI, while portfolio and other investments attracted $7.14bn and $1.09bn respectively. For the second quarter of 2019, the NBS report stated that the economy attracted a total investment inflow of $5.82bn. The second quarter investments inflow indicates a decline of $2.66bn when compared to the first quarter figure of $8.48bn. The $5.82bn inflow is made up of the FDI, $222.89m; portfolio investment of $4.29bn and others $1.3bn.
In the third quarter, the report said the investment inflows into Nigeria declined by $460m from $5.82bn in the second quarter of last year 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 the total capital importation.
This is followed by other investment, which accounted for $2.16bn or 40.39 per cent of total capital, while the FDI accounted for $200.08m or 3.73 per cent of the total capital imported in the third quarter of last year. The report read 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 the total capital.In terms of sector, the report said investment inflows from banks dominated the third quarter with $1.75bn.
It 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 explained 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 of last year.