By Elizabeth Adegbesan
THE value of capital importation into Nigeria declined by 54 per cent quarter-on-quarter, QoQ, to $875.62 million in the second quarter of 2021 (Q2’21), compared to $1.91 billion recorded in Q1’21.
In its just-released Nigerian Capital Importation Q1/Q2 2021 report, the National Bureau of Statistics (NBS) said that the largest amount of capital importation by type was received through portfolio investment at $551.37 million, representing 63 per cent of total capital importation during the period.
The Bureau also noted that capital importation by sector was dominated by banking with Stanbic IBTC Bank Plc emerging top of capital investment during the review period.
Specifically, the report stated: “The total value of capital importation into Nigeria declined to $875.62 million in Q2’21 from $1.9 billion in Q1’21. This represents a decrease of 54 percent compared to Q1’21 and 32 percent decrease compared to Q2’20.
“The largest amount of capital importation by type was received through Portfolio investment, which accounted for 63 per cent ($551.37 million) of total capital importation, followed by Other Investment, which accounted for 28 per cent ($246.27 million) of total capital imported and Foreign Direct Investment (FDI), which accounted for 8.9 per cent ($77.97 million) of total capital imported in Q2’21.
“By sector, Capital importation by Banking dominated in Q2’21 reaching $296.51million of the total capital importation in Q2’21.
“The United Kingdom emerged as the top source of capital investment in Nigeria in Q2’21 with $310.26 million. This accounted for 35 per cent of the total capital inflow in Q2’21.
“By Destination of Investment, Lagos state emerged as the top destination of capital investment in Nigeria in Q2’21 with $780.06 million. This accounted for 89 per cent of the total capital inflow in Q2’21.”