by 
Foreign investment
inflow (capital importation) into the country continued on downward trend in
the third quarter of the year (Q3’19), declining seven percent
quarter-on-quarter (QoQ), to $5.4 billion from $5.8 billion in Q2’19.
The decline in Q3’19 represents a second
consecutive QoQ decline since the beginning of the year. Though foreign
investment inflow rose by 305 percent, QoQ, to $8.5 billion in the first
quarter (Q1’19), from $2.1 billion in Q4’18, it however, fell massively by 32
percent in Q2’19 to $5.8 billion.
The National Bureau of
Statistics (NBS), in its Nigerian Capital Importation report (Q3’19) released
yesterday, noted that portfolio investment accounted for the largest amount of
capital importation by type with 56 per cent ($3 billion) while the banking
sector dominated capital importation by sector with $1.8 billion during the
quarter. The report further showed that Lagos State accounted for 92.7 per cent
of foreign investment inflow by destination with $4.97 billion in Q3’19. The
report stated: “The largest amount of capital importation by type was received
through portfolio investment, which accounted for 55.9 per cent ($3 billion) of
total capital importation, followed by Other Investment, which accounted for
40.4 per cent ($2.2 billion) of total capital, and then Foreign Direct
Investment, FDI, which accounted for 3.7 percent ($200 million) of total
capital imported in Q3 2019. “By sector, capital importation by banking
dominated Q3’19 reaching $1.8 billion of the total capital importation in
Q3’19. “The United Kingdom emerged as the top source of capital investment in
Nigeria in Q3’19 with $2 billion. This accounted for 37.47 per cent of the
total capital inflow in Q3’19. “By Destination of Investment, Lagos State
emerged as the top destination of capital investment in Nigeria in Q3’19 with
$4.98 billion. This accounted for 92.7 per cent of the total capital inflow in
Q3’19.
“By bank, Stanbic IBTC Bank Plc emerged at the
top of capital investment in Nigeria in Q3’19 with $1.6 billion. This accounted
for 30.4 per cent of the total capital inflow in Q3’19.”
Source: Vanguard
