By Etuka Sunday
National Bureau of Statistics (NBS) yesterday disclosed that the total value of capital importation into Nigeria stood at $ 5,513.55 million in the second quarter of 2018.
NBS said, the amount was a decrease of 12.53% compared to Q1 2018, but a 207.62% increase compared to the second quarter of 2017.
The Bureau said, the decline recorded in the second quarter was as a result of a decline in Portfolio and Other Investments, which declined by 9.76% and 24.07% respectively.
It said, the largest amount of capital importation by type was received through Portfolio investment, which accounted for 74.7% ($4,119.5m) of total capital importation, followed by Other Investment, which accounted for 20.5% ($1,132.8m) of total capital, and then Foreign Direct Investment FDI, which accounted for 4.7% ($261.4m) of total capital imported in the second quarter.
NBS said, in the second quarter of 2018, total Foreign Direct Investment stood at $261.35m, growing by 5.97% from the first quarter of the same year, but falling by 4.75% when compared to the corresponding quarter of last year. FDI represented only 5% of the total capital import. Equity Investment dominated FDI in the second quarter, accounting for 97.85% of total FDI received in the second quarter.
The Bureau said, Capital Importation in the form of Other Capital saw significant expansion, from only $5,000 as recorded in Q1 to $5.63 million in Q2, an increase of over 1000percent compared to the same period of last year.
It said, Portfolio Investment remained the most significant component of total capital inflow into Nigeria in the second quarter of 2018, although it contracted by 9.76% over the previous quarter.
It said, the total value of Portfolio Investment in Q2 recorded was $4,119.46 million, which was a 434.64% growth compared to Q2, 2017 ($770.51 million). The 9.76% Q-on-Q decrease was due to a fall in the largest sub-component– Money Market Instruments.
“Capital Importation in the form of Money Market Instrument stood at $2,670.93 million in the second quarter, which was a 24.29% decrease over the previous quarter. Investments in both Equity and Bonds (under Portfolio Investments) reported steady quarter-on-quarter growth, with 49.43% and 19.13% respectively.
“It is worth noting that investments in Bonds under this Capital Importation type has been steadily increasing since Q2, 2017, and in Q22018 , it accounted for 9.71% of total Portfolio Investment.
“Other Investments amounted to $1,132.75 million in the second quarter of 2018. This category continued its decline since the beginning of 2017, from $1,526.9m in Q4, 2017 down to $1,491.9 in Q1, 2018, and further falling by 24.07% in Q2, 2018.
“This category accounted for 20.5% of total Capital Importation in the second quarter of 2018. As in previous periods, Other Investment was dominated by Loans ($1,121.66 million), which accounted for over 99% of Other Investments in the reviewing quarter.
“Other Claims fell sharply, from $223.49 million in Q1 to $11.08 million in Q2. Trade Credits and Currency Deposits posted no inflow in the second quarter of 2018”, he said.