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Nigeria attracted $5.85bn capital inflows in Q1, 2020

Nigeria attracted $5.85bn capital inflows in Q1, 2020

The National Bureau of Statistics (NBS) on Tuesday reported that Nigeria attracted $5.85 billion capital importation in the first quarter of 2020, representing about 31.19 percent decline from the $8.51 billion total inflows recorded in the corresponding period of last year. However, the latest capital importation report released by the official statistics producing agency for Q1, inflows represented an increase of 53.97% when compared to how much was received in Q4 2019.
When analysed based on capital inflow by type, the report indicated that in the quarter under review, the largest capital inflows came from portfolio investment, which accounted for 73.61 percent or $4.31 billion. A further analysis of the portfolio investment inflows showed that investments in money market instruments accounted for the largest chunk, with $3.44 billion followed by equity investments totaling $639.72 million while investments in bonds grossed $231.22 million.
According to the NBS, Foreign Direct Investments (FDI) stood at $214.25 million or 3.66 percent, representing a decline of 16.72 percent and 13.39 percent when compared with the FDI inflows in Q4, 2019 and the corresponding quarter of last year respectively. Other Investments, comprising four categories contributed 22.73 percent or $1.33 billion to the total capital importation in the quarter under review but declined by 19.92 percent when compared to the $1.66 billion attracted in the preceding quarter.
Similarly, investment through trade credits in Q1,2020 was $50,000, Loans, $559.79 million; Currency deposits, $820,000; while other claims recorded the highest share of $769.99 million. When decomposed on sector-by-sector basis, the banking sector attracted the largest amount of capital inflow of $2.99 billion or 51.08 percent of the total capital inflows, followed by Financing, which received $1.33 billion or 22.77 percent in Q1 2020. Shares followed with $817.38 billion or 13.96 percent, Production attracted $273.97 billion, representing 4.68 percent of the total inflow while Telecoms received $157.48 billion or 2.69 percent. When analysed based on inflows by origin the United Kingdom topped with $2.91 billion investment, while South Africa capital flow to Nigeria stood at $692.63 million; United Arab Emirate (UAE), $532.89 million; Netherlands, $441.79 million; and the United States of America, (U.S), $389.1 million.

source: https://www.dailytrust.com.ng/nigeria-attracted-5-85bn-capital-inflows-in-q1-2020.html