Foreign investment inflow (capital importation) into the country continued on downward trend in the third quarter of the year (Q3’19), declining seven percent quarter-on-quarter (QoQ), to $5.4 billion from $5.8 billion in Q2’19.
The decline in Q3’19 represents a second consecutive QoQ decline since the beginning of the year. Though foreign investment inflow rose by 305 percent, QoQ, to $8.5 billion in the first quarter (Q1’19), from $2.1 billion in Q4’18, it however, fell massively by 32 percent in Q2’19 to $5.8 billion.
The National Bureau of Statistics (NBS), in its Nigerian Capital Importation report (Q3’19) released yesterday, noted that portfolio investment accounted for the largest amount of capital importation by type with 56 per cent ($3 billion) while the banking sector dominated capital importation by sector with $1.8 billion during the quarter.
The report further showed that Lagos State accounted for 92.7 per cent of foreign investment inflow by destination with $4.97 billion in Q3’19.
The report stated: "The largest amount of capital importation by type was received through portfolio investment, which accounted for 55.9 per cent ($3 billion) of total capital importation, followed by Other Investment, which accounted for 40.4 per cent ($2.2 billion) of total capital, and then Foreign Direct Investment, FDI, which accounted for 3.7 percent ($200 million) of total capital imported in Q3 2019.
"By sector, capital importation by banking dominated Q3’19 reaching $1.8 billion of the total capital importation in Q3’19.
"The United Kingdom emerged as the top source of capital investment in Nigeria in Q3’19 with $2 billion. This accounted for 37.47 per cent of the total capital inflow in Q3’19.
"By Destination of Investment, Lagos State emerged as the top destination of capital investment in Nigeria in Q3’19 with $4.98 billion. This accounted for 92.7 per cent of the total capital inflow in Q3’19.
"By bank, Stanbic IBTC Bank Plc emerged at the top of capital investment in Nigeria in Q3’19 with $1.6 billion. This accounted for 30.4 per cent of the total capital inflow in Q3’19."
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