• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News Politics

Nigeria received $1.29 billion capital inflows in Q2 2020, down by 78.6%

Samuel OyekanmibySamuel Oyekanmi
3 years ago
in Politics
6 countries with exchange rates higher than US dollar
Share on FacebookShare on TwitterShare on Linkedin

Nigeria received $1.29 billion capital importation (inflows) in the second quarter (Q2) of 2020, representing a decrease of 78.6% compared to the corresponding quarter of 2019. This is according to the latest Nigerian Capital Importation report released by the National Bureau of Statistics (NBS).

According to the report, $1.29 billion represents the lowest inflows recorded since Q1 2017 when capital inflow of $908.3 million was recorded.

Also, the latest figure indicates a decrease of 78.6% compared to $6.05 billion received in the corresponding quarter of 2019 and 77.9% decrease compared to $5.85 billion in Q1 2020.

READ: UPDATED: Nigeria’s GDP contracts by 6.10% in Q2 2020, as critical sectors plunge

 

Capital Inflow by type

The largest amount of capital importation by type in Q2 2020 was received through other investments, which accounted for 58.77% ($761.03 million) of total capital imported during the quarter. Inflows from other investments, declined by 42.8% as against $1.33 billion received in the previous quarter and a further 48.6% reduction compared to $1.48 billion recorded in the corresponding quarter of 2019.

Portfolio investment followed with $385.32 million, accounting for 29.8% of the total inflows in Q2 2020. Under the portfolio category only Equity ($52.3 million) and money market instruments ($332.1 million) received inflows during the quarter under review.

Foreign Direct Investment (FDI): FDI accounted for only 11.47% ($148.6 million) to the total capital inflows. A decline of 30.6% compared to $214.3 million received in Q1 2020 and 33.41% reduction compared to the corresponding quarter of 2019.

FDI is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. In Q2 2020, FDI came into Nigeria only through equities.

READ: Nigeria received $5.82 billion capital inflows in Q2 2019, down by -31.41%

 

Capital inflows by Sectors

The report shows that Shares received the highest capital inflows in Q2 2020, accounting for 35.9% ($464.6 million) of the total capital inflows followed by Financing, which contributed 23.9% ($309.5 million to the total inflows.

The banking sector came third on the list as it attracted $140.2 million (10.8%) capital inflows, others on the list include; Production $110.8 million (8.6%), Telecoms $105.6 million (8.2%), Trading $68.2 million (5.3%) and Agriculture $48.8 million (3.8%).

Get financial and economic data from Nairametrics on Nairalytics

Capital inflows by origin

The United Kingdom emerged as the biggest source of capital investment in Nigeria. In Q2 2020, investment from the U.K amounted to $428.8 million, a decline of 85.3% compared to $2.91 billion recorded in the previous quarter and 87.1% compared to $3.33 billion in Q2 2019.

Other countries that accounted for the biggest share of capital inflows in Nigeria during the period include, South Africa ($149.3 million), UAE ($145.2 million), Netherlands ($141.3 million) and Singapore (134.4 million).

Capital inflows by destination

In terms of destination, only 6 states received capital inflows in the second quarter of 2020, Lagos State received the giant share with $1.13 billion (87.3%) capital inflows, followed by Abuja with ($145.3 million).

Ogun State received $11 million within the quarter, Niger ($6.86 million), Anambra ($1.16 million) and Kano State, which received $130,000 capital inflows.

Upshot

  • The decline in capital inflows recorded during the second quarter of 2020 is attributable to the effect of COVID-19 pandemic, which halted economic activities in most parts of the world.
  • Earlier in the week, Nigerian Bureau of Statistics reported that the Nigerian economy contracted by 6.1% as a result of the negative impacts of disruptions caused by the pandemic and the crash in oil price.
  • The latest figure reflects a negative trend and how dwindling inflows is a cause for worry to the Nigerian economy.
  • It is hoped that subsequent quarters will attract more inflows as the government begin to open most aspects of the economy in phases.
Tags: Business newsCapital importationcapital infowFDIFDI InflowFPIinvestmentLagos StateNigeria News

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

hfm
UBA
Mega Millions
Mega Millions
fidelity banner
HFM







NM newsletters

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • Africa’s biggest economies responsible for continent’s slow economic growth – Report
  • Where Nigerians in Nigeria and diaspora can invest right now
  • Market experts say removal of CBN Governor is a step in the right direction

Follow us on social media:

Recent News

Africa’s Biggest Economies Responsible for Continent’s Slow Economic Growth_ Report

Africa’s biggest economies responsible for continent’s slow economic growth – Report

June 10, 2023
Where Nigerians in Nigeria and Diaspora can invest in?

Where Nigerians in Nigeria and diaspora can invest right now

June 10, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In