Foreign exchange inflows rise to $6.3bn in Q1

FOR the fourth consecutive quarter, Nigeria’s economy witnessed a continuous growth in total capital importation in first quarter of 2018.

Total value of capital imported in the quarter stood at $6,303.63 million, translating to a year on year increase of 594.03 per cent and a 17.11 per cent growth over the figure reported in the previous quarter.

The Capital Importation report of National Bureau of Statistics (NBS) released on Friday attributed the increase in capital inflow during the quarter to increase in portfolio investment, which grew from $3,477.53 million in the previous quarter to $4,565.09 million, accounting for 72.42 per cent of total capital importation during the quarter.

NBS divided capital importation into three main investment types: Foreign Direct Investment (FDI), Portfolio Investment and Other Investments, each comprising various sub-categories.

Since 2017 Q2, portfolio investment has been expanding faster than the other two categories, remaining the largest component of capital imported in Q1, 2018 at 35 per cent of total capital imported.

FDI and Other Investment accounted for 3.91 percent and 23.67 per cent of total capital importation into Nigeria in the quarter under review.

In the first quarter, FDI stood at $246.62 million, falling by 34.83 per cent from the figure reported in the previous quarter, and growing by 16.67 percent on a year-on-year basis.

According to NBS, FDI in Nigeria was still weak when compared to portfolio investment and Other Investment, representing only 3.9 per cent of total capital imported.

“Equity Investment, a sub-category under FDI contributed $246.61 million or 99.9 per cent of FDI during the quarter, while Other Capital under FDI contributed less than 0.001 percent,” he said.

Banking remained the leading sector for FDI inflow, which attracted the most considerable amount of capital investment.