Nigeria’s Capital Importation Increases Despite Economic Downturn

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Despite the current health crisis bedevilling the world and its impact on several economies including Nigeria, the total value of capital importation into the country has been put at $5,854.38m in the first quarter of 2020, representing an increase of 53.97% compared to Q4 2019 and -31.19% decrease compared to the first quarter of 2019.

According to the National Bureau of Statistics, the largest amount of capital importation by type was received through portfolio investment, which accounted for 73.61% ($4,309.47m) of total capital importation, followed by other investments, which accounted for 22.73% ($1,330.65m) of total capital, and then Foreign Direct Investment FDI, which accounted for 3.66% ($214.25m) of total capital imported in Q1 2020.

Sectoral data provided by the bureau shows that capital importation by banking dominated Q1 2020, reaching $2,990.21m of the total capital importation in Q1 2020.

Meanwhile, the United Kingdom emerged the top source of capital investment in Nigeria in Q1 2020 with $2,908.62m. This, according to the NBS, accounted for 49.68% of the total capital inflow in Q1 2020.

Lagos State, going by investment destination, emerged as the top destination of capital investment in Nigeria in Q1 2019 with $5,135.49m, making up 87.72% of the total capital inflow in Q1 2020, leaving a wide gap between that Southwestern state and other Nigerian states and the Federal Capital Territory.

In the meantime, accounting for 28.30% of the total capital inflow in Q1 2020 by a bank, Standard Chartered Bank of Nigeria Limited took on all comer to emerge at the top of capital investment in Nigeria in Q1 2020 with $1,656.60m.

There are, however, indications that this feat may not be repeated in the future as Nigerian looks sure to slide into recession for the second time in four years, according to a recent statement by the Minister of Finance.

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