Wednesday 22 August 2018

Investment inflow into Nigeria drops to $5.5bn


The National Bureau of Statistics on Tuesday released the capital importation report for the second quarter of this year showing that investment inflows dropped by 12.53 per cent to $5.51bn from the first quarter.

The bureau, in the report which was posted on its website, said when compared with the investment inflow for the second quarter of 2017, the $5.51bn represented an increase of 207.62 per cent.

The NBS attributed the decline recorded in the second quarter of this year to a reduction in portfolio and other investments, which declined by 9.76 per cent and 24.07 per cent, respectively.

The report read in part, “The total value of capital importation into Nigeria stood at $5,513.55m in the second quarter of 2018. This was a decrease of 12.53 per cent compared to Q1 2018, but a 207.62 per cent increase compared to the second quarter of 2017.

“The decline recorded in the second quarter was as a result of a decline in portfolio and other investments, which declined by 9.76 per cent and 24.07 per cent, respectively.”

Despite the decline in portfolio investment, the report stated this investment class still accounted for the largest amount of capital imported into the economy during the period.

It noted that the economy received a total portfolio investment of $4.12bn, adding that this accounted for 74.7 per cent of the total capital importation during the period under review.

It added that this was followed by other investment, which accounted for $1.13bn or 20.5 per cent of total investment inflows.

The report explained further that Foreign Direct Investment attracted $261.4m for the economy, adding that this accounted for 4.7 per cent of total capital imported in the second quarter.

In terms of the sector where the amount was invested, the NBS report stated that the service sector became the leading recipient of foreign capital inflow into Nigeria, attracting $479.85m.

The banking sector, it stated, followed with $294.96m in the second quarter of the year.

The $294.96m invested in the banking sector was a reduction from the $1.18bn realised in the first quarter of this year.

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