The total value of capital importation into Nigeria in the first quarter of 2020 stood at $5,85bn according to data released by the National Bureau of Statistics (NBS). The figure represents an increase of 54% compared to Q4 2019 and a decrease of 31% compared to the first quarter of 2019.
Portfolio Investment accounted for the largest amount of capital importation by type, amounting to $4.31bn representing 74% of total capital importation in Q1 2020. with a Quarter on Quarter (QonQ) growth of 129% and a Year on Year (YonY) growth of 39%.
Of the total $4.31bn value of Portfolio Investment, Money Market Instrument accounted for $3.44bn, with a QonQ growth of 132% and YonY drop of 42%. While Equity and Bonds accounted for $639.72m and $132.22m, with QonQ growths of 81% and 388% and YonY drops of 3% and 59% respectively
Other Investment, accounted for $1.33bn representing 23% of total capital, with a QonQ drop of 20% and YonY drop of 15%. A breakdown of the Other Investment inflow shows that Other Claims amounts to $769.99m; Loans amounts to $559.79m; Currency Deposit amounts to $0.82m and Trade Credit $0.05m.
Foreign Direct Investment (FDI) amounted to $214.25m, representing 4% of total capital imported in Q1 2020. FDI breakdown reveals that Equity amounted to $213.84m while Other Capital amounted to $0.41m.
By sector, Capital importation by banking dominated Q1 2020 reaching $2,990.21m, representing 51% of the total capital importation in Q1 2020. Followed by financing reaching $1,332.27m, representing 23% of total.
Drilling accounted for the lowest amount in Capital importation in Q1 2020 reaching $0.03m. Brewing, Hotels, Fishing, Training and Weaving sectors has no amount reported for Capital importation in the sectors.
By Destination of Investment, Lagos state emerged as the top destination of capital investment in Nigeria in Q1 2019 with $5,135.49m. This accounted for 88% of the total capital inflow in Q1 2020. Apart from FCT Abuja, other states that received capital inflow includes: Akwa Ibom, Kaduna, Kano, Ogun, Niger and Sokoto state.
Standard Chartered Bank Nigeria Limited emerged at the top of capital investment destination bank in Nigeria in Q1 2020 with $1,656.60m. This accounted for 28.30% of the total capital inflow in Q1 2020.
The United Kingdom emerged as the top source of capital investment in Nigeria in Q1 2020 with $2,908.62m. This accounted for 49.68% of the total capital inflow in Q1 2020.