The National Bureau of Statistics (NBS) has reported that Nigeria received $1.29 billion capital importation (inflows) in the second quarter (Q2) of 2020.
This represented a decrease of 78.6% when compared to Q2, 2019 and 77.9% decrease compared to $5.85 billion in Q1 2020.
According to the latest Nigerian Capital Importation report released by the Bureau, the $1.29 billion recorded in Q2 this year represented the lowest inflows recorded since Q1 2017, when capital inflow of $908.3 million was recorded.
Capital Inflow by type
The largest amount of capital importation by type in Q2 2020 was received through other investments, which accounted for 58.77% ($761.03 million). Inflows from other investments, declined by 42.8% as against $1.33 billion received in the preceding quarter and a further 48.6% reduction compared to $1.48 billion recorded in Q2, 2019.
Portfolio investment accounted for the second largest inflow with $385.32 million, accounting for 29.8% of the total inflows in Q2 2020. Under the portfolio category only Equity ($52.3 million) and money market instruments ($332.1 million) received inflows during the quarter under review.
Foreign Direct Investment (FDI) accounted for only 11.47% ($148.6 million) to the total capital inflows. A decline of 30.6% compared to $214.3 million received in Q1 2020 and 33.41% reduction compared to the corresponding quarter of 2019.
Capital inflows by Sectors
The statistics reporting agency’s report further reflected that Shares received the highest capital inflows in Q2 2020, accounting for 35.9% ($464.6 million) of the total capital inflows followed by Financing, which contributed 23.9% ($309.5 million) to the total inflows.
The banking sector came third as it attracted $140.2 million (10.8%) capital inflows, others on the list include; Production $110.8 million (8.6%), Telecoms $105.6 million (8.2%), Trading $68.2 million (5.3%) and Agriculture $48.8 million (3.8%).
Capital inflows by origin
According to the NBS, the United Kingdom emerged as the biggest source of capital investment in Nigeria. In Q2 2020, investment from the U.K amounted to $428.8 million, a decline of 85.3% compared to $2.91 billion recorded in the previous quarter and 87.1% compared to $3.33 billion in Q2 2019.
Other countries that accounted for large share of capital inflows in Nigeria during the period include, South Africa ($149.3 million), UAE ($145.2 million), Netherlands ($141.3 million) and Singapore (134.4 million).
Capital inflows by destination
The Bureau reported that in terms of destination, only six states received capital inflows in the second quarter of 2020, Lagos State received the highest share with $1.13 billion (87.3%) capital inflows, followed by Abuja with ($145.3 million).
Ogun State received $11 million within the quarter, Niger ($6.86 million), Anambra ($1.16 million) and Kano State, which received $130,000 capital inflows.
