FOREIGN INVESTMENT DECLINE PERSISTS

 In Investor News

Nigeria’s foreign investment, otherwise known as capital importation has recorded consistent decline Quarter -on- Quarter, QoQ in the year 2018. However, portfolio investment inflow rose by 38 percent, Year-on Year (YoY) to $16.8 billion in the fourth quarter of 2018, Q4’18, from $12.2 billion recorded in the corresponding period of 2017.

The Capital Importation report of the National Bureau of Statistics (NBS) released yesterday, showed that on quarterly basis, the figure which stood at $6.3 billion in the first quarter of 2018 (Q1’18) nosedived by 12.7 percent to $5.5 billion in Q2’18.  The figure further dropped by 48.2 percent to $2.85 billion in Q3, while it dropped further by 26.3 percent to $2.1billion in Q4.

The bureau further noted that the United Kingdom emerged as the top source of capital investment in Nigeria in 2018 with $6 billion, representing 36 percent of the total capital inflow during the period under review. The report stated: “The total value of capital importation into Nigeria stood at $2.14 billion in the Q4’18. This represents a decrease of 25.05 percent compared to Q3 2018 and 60.24 percent decrease compared to the fourth quarter of 2017.

“Similarly, the total value of capital importation into Nigeria stood at $16,812.47 million in 2018 compared to $12.23 billion capital imported in 2017. This represents 37.49 percent  growth YoY. “The largest amount of capital importation by type was received through Portfolio investment, which accounted for 70.20 percent ($11.8 billion) of total capital importation, followed by Other Investment, which accounted for 22.69 percent ($3.8) of total capital, and then Foreign Direct Investment ( FDI) which accounted for 7.11 percent ($1.2 billion) of total capital imported in 2018.

“By sector, Capital importation by shares, which is closely related to Equity investment (FDI and Portfolio Investment) dominated 2018 reaching $10.4 billion of the total capital Importation in 2018. “The United Kingdom emerged as the top source of capital investment in Nigeria in 2018 with $6 billion. This accounted for 35.74 percent of the total capital inflow in 2018”.

https://www.vanguardngr.com/2019/02/foreign-investment-decline-persists

 

 

 

 

 

Recent Posts

Leave a Comment

Contact Us

Please send us a mail. We'll respond to you shortly.

Not readable? Change text. captcha txt

Start typing and press Enter to search