Global Investment Trends Monitor, Foreign Direct Investment

Figures from the National Bureau of Statistics’ (NBS) Capital Report for the Q3 2018, show capital imported into the country fell by 48% to $2.8 billion. This was a decrease of 48.21% compared to Q2 2018 and a 31.12% decrease compared to the third quarter of 2017.

Here are highlights of the report:

  • Portfolio investment accounted for 60.5% ($1.723 billion) of total capital imported.
  • Other Investment accounted for 21.07% ($601.53 million) of total capital imported.
  • Foreign Direct Investment (FDI) accounted for 18.58% ($530.63 million) of total capital imported.

FDI rebounds sharply

FDI hit a high not seen since 2015. FDI peaked at $717 million in the third quarter of 2015 and has largely been below the $400 million marks.

Components of the portfolio investment

Money market instruments accounted for 70.5% or $1.2 billion of portfolio investments that came into the country. Equity investments accounted for 22% or $394.47 million of portfolio investments that came into the country. Bond investments accounted for the rest.

Top sources of capital investment

The United States emerged as the top source of capital investment in Nigeria in the third quarter of 2018 with $911.33 million. This accounted for 31.91% of the total capital inflow in Q3 2018. The United Kingdom was next with $871 million. South Africa takes the third position with $153 million.

Abuja got the most capital

The Federal Capital Territory (Abuja) got the most capital (for the second quarter ending June 2018). Abuja received 45.4% or $2.5 billion of the $5.5 billion – in capital – that was imported into the country in the quarter in question.

Lagos State was next with $1.6 billion, and Abia third place with $1.2 billion received in the third quarter of 2018.

Which bank handled the most capital?

Tier two lender, Stanbic IBTC was the most active in this space, accounting for $3.0 billion or 54.5% of the $5.5 billion – in capital – that was imported into the country in the second quarter of 2018. Standard Chartered Bank was a distant second with $817 million of capital passing through the bank. Citibank Nigeria Limited takes third place with $722 million of capital imported into the country passing through the bank.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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