Economy

Capital importation suffers 30% decline, records $6.7bn

The value of capital importation into Nigeria fell by 30.78 per cent from $9.68bn in 2020 to $6.7bn in 2021 according to data from the National Bureau of Statistics.

In its ‘Nigerian Capital Importation’ report for the four quarters of 2020 and 2021, the NBS disclosed that total capital importation into the nation was $9.68bn in 2020 and $6.7bn in 2021.

For the first and second quarter of 2021, the NBS said, “The total value of capital importation into Nigeria declined to $875.62m in the second quarter of 2021 from $1.91bn in Q1, 2021.

“This represents a decrease of -54.06 per cent compared to Q1 2021 and -32.38 per cent decrease compared to Q2 2020. The largest amount of capital importation by type was received through Portfolio investment, which accounted for 62.97 per cent ($551.37m) of total capital importation, followed by Other Investment, which accounted for 28.13 per cent ($246.27m) of total capital imported and Foreign Direct Investment, which accounted for 8.90 per cent ($77.97m) of total capital imported in Q2 2021.”

During the third quarter, capital importation stood at $1.73bn with the largest amount of capital importation by type begin PI which accounted for 70.30 per cent ($1.22bn), followed by other Investment which accounted for 23.47 per cent ($406.35m) and FDI which accounted for 6.23 per cent ($107.81m).

In the fourth quarter, the NBS added, “The total value of capital importation into Nigeria in Q4, 2021 stood at $2.19bn from $1.73m in the preceding quarter showing an increase of 26.35 per cent.

“When compared to the corresponding quarter of 2020, capital importation increased by 109.28 per cent from $1.05bn. The largest amount of capital importation by type was received through other investments, which accounted for 54.24 per cent ($1.19bn).

“This was followed by PI with 29.39 per cent ($642.87m) and FDI amounted to 16.38 per cent ($358.23m) of total capital imported in Q4 2021.”

According to the NBS, most of the capital imported into the nation was from Mauritius, United States of America, Republic of South Africa, and the United Kingdom. Lagos state attracted most of the capital being imported into the nation.

In Q4, it attracted 90.66 per cent; in Q3, it attracted 85.57 per cent; in Q2, it attracted 89.09 per cent; and 82.81 per cent in Q1.

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