The Nigerian Bureau of Statistics has released the full year (Q4) 2017 Nigerian Capital Importation Report.
The total capital imported in the fourth quarter of 2017 was $5,382.9 million, this was an annual growth of 247.5%, and quarterly growth of 29.9%.
As at the end of 2017, total capital imported into Nigeria was $12,228.6 million, an increase of $7,104.4 million or 138.7% from the figure recorded in 2016.
The growth in capital importation in 2017 was mainly driven by an increase in Portfolio Investment-which is tied to the entry of funds into the country by foreigners depositing money in the country’s bank or make purchases in the country’s stock and bond markets, which went up by $5,516.2 million from the previous year to reach $7,329.1 million in 2017, and accounting for 60% of capital imported.
The importation data is inclusive of both imported physical capital, such as that of plants and machinery, as well as financial capital importation.
The capital importation data is compiled using information on banking transactions, gathered through Electronic Financial Analysis and Surveillance System (e-FASS) software, which is also complemented with data from the customs, through the analysis of declaration forms for physical capital imported.
For the capital importation which is divided into three main types namely the: Foreign Direct Investment (FDI), Portfolio Investment and Other Investments.
In Q4 2017, the Foreign Direct Investment hit $378.4 million for the first time since Q4 2015 when it reported $123.2 million. This figure in Q4 2017 was a substantial increase of 221.8% when compared to the 3rd quarter, and a 9.8% increase compared to Q4 2017.
The growth in FDI was mainly driven by Equity Investments, which contributed 99.8%, while Other Capital Investment contributed 0.2%.
Portfolio Investment was the main driver of Capital Importation in the fourth quarter of 2017, with an amount of $3,477.5 million, representing a quarter on quarter growth of 25.7%. Year on year, it increased by 1,123.5%, which is over twelve times the figure recorded in Q4 2016($284.2 million).
The increase in portfolio investment was largely driven by a strong growth in Money Market Instruments, which recorded $2,178.8 million, the first time since Q3 2013. Money Market Instruments contributed 63% to Portfolio investments.
Other investment accounted for 28.4% of total capital importation in the fourth quarter of 2017. This category of capital importation grew 65.96% year on year, and by 21.2% when compared to the previous quarter.
The $1,526.9 million recorded by other investment was mainly in the form of Loans, which was $1,091.2 million in the fourth quarter, followed by other claims which recorded $425.7 million.
The report also revealed that in the fourth quarter of 2017, Banking became the second leading sector to attract the highest amount of capital inflow, attracting $543.4 million or 10.1% of total capital, an increase of 5.8% from the previous quarter.
Next to Banking was Production, which had 5.9% to total capital investment.
Capital Importation to Servicing dropped from $586.97 million in the previous quarter to $216.45 million in the fourth quarter, while $99.4 million flowed to the fishing sector. Capital Importation to Telecommunications, Financing and Construction sectors also increased strongly compared to the previous quarter.
Figures also show that Abuja attracted the highest amount of foreign capital, accounting for $2,680.3 million or 49.8%. This was an increase of 227.8% from the figure recorded in the third quarter of 2017 ($817.6million).
Lagos which has always had the highest share of capital importation, had its share drop from 79.5% of total share in Q3 2017, to a share of 47.4% in q4, 2017. Other states including Akwa-Ibom, Ogun, Oyo and Delta also attracted foreign capital investments.
The country from which Nigeria imported the most capital from was the United Kingdom, which accounted for
$1,609.9. million, 30% of the total of capital inflow in Q4,2017 while the second largest value of capital importation was the United States. The US accounted for $1,001.4 million in the fourth quarter of 2017 or 18.6%.
