Nigeria’s capital inflow declined by 78.6 per cent during the second quarter of 2020 as it received $1.29 billion compared to the corresponding quarter of 2019.
According to the Nigerian Capital Importation report released by the National Bureau of Statistics (NBS) on Friday, the $1.29 billion capital inflow for the quarter was the lowest inflows recorded since Q1 2017 when $908.3 million was recorded.
Also, the latest figure indicates a decrease of 78.6 per cent compared to $6.05 billion received in the corresponding quarter of 2019 and 77.9 per cent decrease compared to $5.85 billion in Q1 2020.
The largest amount of capital importation by type in Q2 2020 was received through other investments, which accounted for 58.77 per cent or $761.03 million of total capital imported during the quarter.
This was followed by Portfolio investment of $385.32 million.
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): FDI accounted for only 11.47 per cent ($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.
FDI is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. In Q2 2020, FDI came into Nigeria only through equities.
Portfolio investment through Shares received the highest capital inflows in Q2 2020, accounting for 35.9 per cent ($464.6 million) of the total capital inflows followed by Financing, which contributed 23.9 per cent ($309.5 million to the total inflows.
By origin, the United Kingdom emerged as the biggest source of capital investment in Nigeria.
Only six states received capital inflows in the second quarter of 2020 with Lagos State getting the largest share of $1.13 billion or 87.3 per cent 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.
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