Nigeria recorded a decrease in its total capital importation in the third quarter of 2019 as the amount of investment inflows into the country stood at $5.4 million, 7.8 percent lower from the second quarter of this year, $5.8 billion, but 87.9 percent higher than the Q3, 2018 figures.
In a report released on Monday morning by the National Bureau of Statistics (NBS), it was stated that the largest percentage of the third quarter capital importation came from the portfolio investment, accounting for 55.9 percent or $2.99 billion.
This was followed by Other Investment with 40.4 percent or $2.17 billion, while Foreign Direct Investment (FDI) accounted for the remaining 3.73 percent or $200.08 million.
It was further revealed that the foreign portfolio investment of $2.99 billion had the highest input from its money market instruments, which brought in $2.55 billion of total investment. Equity followed with $358.2 million, while bonds made up $91.6 million.
A breakdown of the $2.17 billion realized from other investment saw loans accounting for $1.8 billion, while other claims amounted to the remaining $393.1 million. The country’s trade credits and currency deposits were not on record.
For the FDI of $200.08 million, a total of $196.4 million in equity with other capital amounting to $3.7 million gave the overall figure for the category.
Looking at the channels these investments came into Nigeria, as usual, the banking sector dominated the third quarter as it reached $1.7 billion of the $5.4 billion. It was followed by the financing and the telecommunications sector which accounted for 27.5 percent and 16.5 percent respectively.
The United Kingdom emerged as Nigeria’s top source of capital investment in Q3 2019 with $2.0 billion accounting for 37.5 percent, followed by the United States which brought in $1.2 billion and South Africa at $708.8 million of the total capital inflows.
In terms of destination, Lagos State was the top destination of capital investment in Nigeria in the period under review with $4.9 billion at 92.7 percent of the total capital inflow. Ogun State followed with a total of $7 million while Oyo State stood at $1.7 million.
By banks, Stanbic IBTC Bank Plc emerged at the top of capital investment in Nigeria with $1.6 billion (30.4 percent), while Ecobank followed with $754.4 million, and Standard Chartered followed with $502.5 million of the total capital inflow in Q3 2019.
