Business News
Nigeria received $5.82 billion capital inflows in Q2 2019, down by -31.41%
Nigeria received $5.82 billion capital inflows in Q2 2019, down by -31.41%
Nigeria received $5.82 billion capital inflows in the second quarter (Q2) of 2019, compared to $8.48 billion in the first quarter (Q1). This is revealed in the latest capital importation data released by the National Bureau of Statistics (NBS).
According to the NBS report, the $5.82 billion capital importation in the first quarter represents a -31.41% contraction from the total amount ($8.48 billion) received within the last quarter.
Also, Capital inflows at $5.82bn in Q2 2019 compared to $5.51 billion in Q2 2018 represents a year on year growth of 5.56%.
The Details: Basically, Nigeria’s capital importation is categorized into three investment types, and these include Portfolio Investment, Foreign Direct Investment (FDI) and Other Investment.
The Portfolio Investment in Nigeria is made up of three items which include Equity, Bonds and Money Market instruments. During the period under review, the largest amount of capital importation by type was received through portfolio investment, which accounted for 73.76% ($4.29 billion) of total capital importation.
- Money Market instruments accounted for 81% of total portfolio investments, and this amounted to $3.47 billion.
- Equity ranked second with $496.8 million or 12% of the portfolio investment.
- Lastly, Bonds received the lowest portfolio investment with $316.28 million or 7% of total capital.
Other Investment is broken down into four categories which include Trade credits, Loans, Currency deposits and Other claims. In the second quarter of 2019, other investments recorded the second biggest capital importation, accounting for 22.41% or $1.30 billion of total capital importation.
- Loans investment was estimated at $413.37 million and Other claims within the quarter stood at $413.37.
- While currency deposit did not receive any investment, trade credit got a meager $110,000.
Foreign Direct Investment (FDI) investments in Nigeria accounted for the least of total capital importation with $222.89 million or 3.83% of total capital imported in Q2 2019.
- Equity FDI inflow in the second quarter was estimated at $222.89 million, a decline from the value recorded in Q1 2019. However, FDI only received 100% equity capital importation.
A further breakdown in the report further shows that by sector, capital importation in banking dominated Q2 2019 with $1.89 billion of the total capital importation.
A closer look shows that the United Kingdom emerged as the top source of capital investment in Nigeria in Q2 2019 with $3.13 billion. This accounted for 53.85% of the total capital inflow in Q2 2019.
Key takeaways
- Following the drop in capital inflows into Nigeria in Q2 2019, this suggests investors’ confidence in the economy dampened during the period.
- This also reflected in the Gross Domestic Product (GDP) of the country that slowed to 1.94% in Q2 2019.
- While momentum improved in the economy in Q1 with 2.10% GDP growth, major sectors’ contracted and this may partly be due to the uncertainty the surrounded the political atmosphere in the country.
- Recall, the second quarter of 2019 (April and June) was characterized by the lack of ministers to drive policies to spur growth in different sectors, and this must have affected investors’ sentiments to invest in the country.
[READ FURTHER: Nigeria’s GDP slows to 1.94% in Q2 2019, as non-oil sector contracts]
ENDSARS
South-West Governors say attacks in Lagos were attempts to weaken the region’s economy
South West governors have they described the coordinated attacks in the state as an attempt to weaken the region’s economy.
Governors of the South-West states have pledged their supports to their Lagos State counterpart, as they described the coordinated attacks in the state as an attempt to weaken the region’s economy.
This was disclosed by the Chief Press Secretary of the state, Gboyega Akosile, during the visits of the Governors and the Federal Executive Council members from SouthWest to the public assets and private properties destroyed in last Wednesday’s arson in the state.
READ: How to access new N75 billion Nigerian Youth Investment Fund
He tweeted, “Shock! This was the expression on the faces of the Federal Executive Council (FEC) members from Southwest and Governors as they toured the public assets and private properties destroyed in Wednesday’s coordinated arson in Lagos State.
“The delegation of Governors and Ministers was personally received by Sanwo-Olu at the State House in Marina, where the Lagos helmsman showed them the pictorial evidence of the violence before visiting some of the torched assets.”
READ: President Buhari approves N13.3 billion for Community Policing in Nigeria
At a joint press conference held after the tour, Chairman of Southwest Governors’ Forum and Ondo State Governor, Arakunrin Rotimi Akeredolu, SAN, compared the scenes to a war zone, given the extent of the destruction.
According to him, the violence that resulted from the EndSARS protest left much to be desired, stressing that there was an agenda beyond the youth demonstration against police brutality.
READ: FEC approves $40 oil benchmark for 2021 budget
He said, “We are deeply concerned with the ease with which public buildings, utilities, police stations, and investment of our people have been burnt despite the proximity of security agencies in those areas.
Shock! This was the expression on the faces of the Federal Executive Council (FEC) members from Southwest and Governors as they toured the public assets and private properties destroyed in Wednesday's coordinated arson in Lagos State. pic.twitter.com/TahuPIWkcQ
— Gboyega Akosile (@gboyegaakosile) October 25, 2020
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What this means: From all indications, it is obvious that the South-West Governors believed that the said attack, which were rumoured to have been carried out by suspected hoodlums, were sponsored by some people to deliberately disorganize the region’s economy.
Business
#EndSARS Protest: 80 BRT buses worth N3.9 billion were destroyed by hoodlums – LASG
The Lagos State Government disclosed that the 84 BRT vehicles destroyed by the hoodlums cost a total of about N3.9 billion.
The Lagos State Government has revealed that 27 of the burnt Bus Rapid Transit (BRT) vehicles in the Oyingbo and Ojodu Berger areas of the state cost $200,000 each, while 57 of them cost $100,000 each, all totaling about N3.9 billion.
This statement was made by the Lagos State Government on Friday, after evaluating the extent of damage made to the Bus Rapid Transit (BRT) vehicles.
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What you should know
Few days ago, hoodlums hiding under the cover of #EndSARS protests allegedly attacked and razed the Oyingbo BRT terminal, with several buses burnt. Nairametrics reported that Primero Transport Services Ltd (PRT), the owners of BRT buses said they have lost over N100 million in 6 days due to the #EndSARS protests.
READ: Lagos Bus Service records 10 million passengers in 10 months
The State’s Commissioner for Information, Mr. Gbenga Omotosho, in an exclusive interview with Punch, disclosed that:
- 23 big BRT buses were razed down, while 57 medium-size BRT buses were affected by the violence, which brings the total of the BRT vehicles destroyed to 80.
- 23 of the 80 BRT buses burnt by the hoodlums were at Ojodu, while the remaining 57 were at the Oyingbo area.
- The big buses cost around $200,000 each, while the medium-size ones cost around $100,000 each.
READ: #EndSARS: Lagos orders investigation of Lekki Toll Plaza shooting
What they are saying
Mr. Omotosho said, “As I speak, the Governor and some of us are going around the state from one facility to the other. We are also visiting private facilities. Some of the places were the Oregun Vehicle Inspection Service office, the BRT park at Oyingbo, and the terminus at Ojodu Berger.
“I don’t know how they planned it; the hoodlums left the old buses and went for the new ones. The new ones were worth billions of naira.
READ: Operators of BRT suspend operations on Ikorodu-TBS route
“However, the cumulative losses incurred by the state are not ready yet. But it will be mind-boggling. It came on a scale beyond belief. We know that the police have apprehended suspects.”
What this means
The vehicles were purchased in dollars; So, the consistent decrease in the value of Naira is expected to edge the cost of these buses up, when denominated in Naira.
The Lagos State Commissioner for Information, Mr Gbenga Omotosho explained that with the current foreign exchange rate, the 80 destroyed BRT buses are now valued at N3.929 billion.
Business
BREAKING: Lagos State reviews curfew again, now from 8pm to 6am
Governor Babjide Sanwo-Olu has once again reviewed the curfew in the state to now commence between 8 pm to 6 am.
The Lagos State Governor, Babajide Sanwo-Olu, has further reviewed the curfew earlier imposed on the state to help contain the large scale violence following the hijacked #EndSARS protests against police brutality and extra-judicial killings. The curfew now starts at 8 pm and ends at 6 am daily.
This is coming 2 days after the Governor had eased the 24-hour curfew to start from 6 pm to 8 am daily.
This disclosure was made by the Lagos State Commissioner for Information and Strategy, Gbenga Omotoso, on Sunday, October 25, 2020.
The Commissioner in his statement said, “The curfew in Lagos State has been reviewed. Restriction time is now 8 pm to 6 am. Lagosians are enjoined to plan their journey times as they go about their lawful businesses. Public schools remain shut till further notice.”
What this means
This new review gives Lagosians an extra 4 hours to go about their daily activities.
What to expect
The Lagos State government will keep on reviewing and relaxing the curfew, as long as the security situation does not spike again.
Details later…
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