Nigerian Economy Attracts N1.5trn Foreign Investments In H1 2014
A total of $5.8 billion (N903.9 billion) foreign investments flowed into the Nigerian economy in the second quarter of 2014 according to latest figures released by the Nigerian Bureau of Statistics (NBS) yesterday, bringing total foreign investments inflow in the first six months of 2014 to $9.70 billion or N1.51 trilion.
According to the statistics office, foreign investments inflow had risen by 48.6 per cent or $1.89 billion in the second quarter of the year compared to $3.9 billion capital imported into the Nigerian economy in the first three months of the year.
According to the NBS, portfolio investments accounted for a huge chunk of the imported capital in the second quarter of the year. Portfolio investments made up 84.72 per cent of the total capital inflow with $4.92 billion, while Foreign Direct Investment (FDI) constituted 8.2 per cent with $472.99 million. Other investments accounted for 7.13 per cent with $413.63 billion.
The statistics office noted in its Nigerian Capital Importation report made available on its website last night that capital importation prior to 2013 was rising steadily, recovering from the lows recorded post the 2008 financial crisis.
Capital importation had reached its peak in the first quarter of 2013, when $6.699 billion was imported into the country. “Capital importation however declined in the following quarter, dropping to $3.904 billion in the opening quarter of 2014, a year on year decline of $2.696 billion or 40.85 per cent.
“The second quarter value brought the total capital imported through the first half of 2014 to $9.708 billion, which was still $2.509 billion or 20.5 per cent lower than the $12.218 billion recorded for the same period in 2013.”
Continuing its increasingly dominant trend, portfolio investments in the second quarter of 2014 was up by $2.04 billion or 71.3 per cent relative to the $2.86 billion recorded in the preceding quarter, and grew by $429.63 million or 9.5 per cent year on year.
“Subsequently, its total share of capital imported increased by 11.24 percentage points from the 73.4 per cent in the preceding quarter to 84.7 per cent. The second quarter 2014 share was also 4.8 percentage points greater than the 79.8 per cent it represented in the corresponding quarter of 2013.”
According to business type, the report said “shares continue to attract the most foreign capital into Nigeria representing $3.39 billion or 58.5 per cent of total capital imported in the second quarter of 2014. This was followed by the financial sector with investment of $723.1 million or 12.4 per cent for the second quarter.
“In terms of destination, the report said that Lagos continues to outstrip other states in its capital receipt, with $5.70 billion or 98.3 per cent of the second quarter. Lagos experienced year on year growth in capital importation of $149 million or 2.6 per cent, while inflows increased by $1.94 billion or 51.8 per cent from the preceding quarter,” it added.
The United Kingdom, the report added, continues to provide the greatest source of capital imported into Nigeria, with $3.97 billion or 68.4 per cent of the total coming from this country alone in the second quarter.