Nigeria attracted $5.85bn capital inflows in Q1 2020 –NBS

A total of $5.85 billion capital importation (inflows) came into Nigeria between January and March 2020, compared to $8.51 billion in first quarter of 2019. This fact is reported in the latest capital importation report released by the National Bureau of Statistics (NBS). According to the NBS, the $5.85 billion worth of capital importation in the first quarter of 2020 represents an increase of 53.97 per cent when compared to how much was received in the last quarter of 2019. But, when compared to the corresponding first quarter period of 2019, the figure indicates a 31.19 per cent drop in inflow.

According to NBS report in the first quarter of 2020, the largest amount of capital importation was received through portfolio investment, which accounted for 73.61 per cent ($4.31 billion) of the total capital importation. Under the portfolio category, investment in money market instruments remains the largest recipient of capital inflows with a total of $3.44 billion, followed by $639.72 million in equity, while investment in bonds stood at $231.22 million. Foreign Direct Investment inflow FDI, constituted only 3.66 per cent ($214.25 million) to the total capital inflows. A decline of 16.72 per cent when compared to $257.25 million received in last quarter of 2019 and 13.39 per cent reduction compared to the corresponding quarter of 2019. Other investments, which was broken down into four categories contributed 22.73 per cent ($1.33 billion) to the total capital importation in the first quarter of 2020. The inflows through other investments fell by 19.92 per cent when compared to $1.66 billion received in the last quarter of 2019.

Investment through trade credits in the first quarter of 2020 was $50,000, Loans ($559.79 million), Currency deposits ($820,000) while other claims scooped the highest share of $769.99 million. A further look into the report shows that the banking sector received the largest portion of capital importation as it constituted 51.08% ($2.99 billion) to the total capital inflows, followed by Financing, which received $1.33 billion (22.77%) in Q1 2020. Shares followed with $817.38 billion (13.96%), Production $273.97 billion (4.68%) while Telecoms received $157.48 billion (2.69%). The United Kingdom remains the biggest source of capital investment in Nigeria. In Q1 2020, investment from the U.K amounted to $2.91 billion, up from $1.19 billion received in Q4 2019 and decline compared to $4.48 billion in Q1 2019. The top five countries that accounted for the biggest capital inflows in Nigeria within the quarter include U.K ($2.91 billion), South Africa ($692.63 million), UAE ($532.89 million), Netherlands (441.79 million), and U.S ($389.1 million).