• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Opinions Op-Eds

Improvement in Nigeria’s capital inflows in Q3

CSL Stockbrokers by CSL Stockbrokers
January 11, 2022
in Op-Eds
The US dollar remains king, U.S dollar gains against major currencies, America threatens China with sanctions., U.S dollar slumps against major currencies, investors become optimistic about global demand, U.S Dollar Stands Firm, Foreign Exchange Traders Remain Neutral 
Share on FacebookShare on TwitterShare on Linkedin

Analysis of the recently released data by the National Bureau of Statistics (NBS) on capital importation for Q3 2021 revealed that the total amount of foreign investment inflows into the Nigerian economy improved by 97.7% q/q and 18.5% y/y to US$1.73bn in Q3 2021 from US$0.88bn in Q2 2021 and US$1.46bn in Q3 2020.

However, year-to-date (YTD), the total foreign capital inflows as of 9M 2021 amounted to US$4.51bn, underperforming that of 9M 2020 by 47.6% y/y. Though yet to reach pre-pandemic levels, the recovery in foreign inflows has been gradual. Besides, the Nigerian market as a whole still lacks the long-awaited catalysts, such as FX clarity, improved security profile, stable government and business policies, which typically attract foreign investments.

Breakdown of the Q3 data showed that the dominant portfolio investments increased contribution to the total inflows from 63.0% in Q2 2021 to 70.3% in Q3 2021, leaving other investment (23.5%) and foreign direct investment (6.2%) to plug the balance. Interestingly, the increase in foreign inflows in Q3 was broad-based, benefiting majorly from the growth in portfolio investment (+120.8% q/q), trailed by an increase in other investments (+65.0% q/q) and a 38.3% q/q increase in foreign direct investment.

RelatedStories

Buhari’s administration created 10 new passport offices-NIS

Nigeria’s capital importation fell sharply under Buhari, FPI peaked and crashed, FDI persistently weak despite reforms 

July 17, 2025
Nigeria’s first domestic dollar bond records 180% subscription 

Capital importation: Foreign investors prefer “hot money” over FDI as money markets gulp $2.68billion  

October 17, 2024

Meanwhile, the contribution of Foreign Portfolio Investments (FPIs) remained skewed to investment in money market instruments (hot money) by foreign investors (65.4% of the FPIs in Q3 2021). This continues to make the economy extremely vulnerable to external factors beyond the control of policymakers. Also, there was a sharp increase in bonds investment, rising by 2410.2% q/q as equity investments dipped by 33.7% q/q.

Looking ahead, we are concerned about the capital importation outlook, especially as political campaigns begin to intensify, raising political risk in the country. Besides political risk, FX repatriation will continue to undermine confidence and prevent the free flow of capital. Beyond that, the perennial inability of over 50% of the 36 states to attract capital inflows cannot be ignored, which has over time hindered inclusive investments across the
country.


CSL Stockbrokers Limited, Lagos (CSLS) is a wholly owned subsidiary of FCMB Group Plc and is regulated by the Securities and Exchange Commission, Nigeria. CSLS is a member of the Nigerian Stock Exchange.

Tags: FDIForeign Portfolio InvestmentsFPI
CSL Stockbrokers

CSL Stockbrokers

Related Posts

Buhari’s administration created 10 new passport offices-NIS
Economy

Nigeria’s capital importation fell sharply under Buhari, FPI peaked and crashed, FDI persistently weak despite reforms 

July 17, 2025
Nigeria’s first domestic dollar bond records 180% subscription 
Economy

Capital importation: Foreign investors prefer “hot money” over FDI as money markets gulp $2.68billion  

October 17, 2024
After raising hopes, Naira depreciates against the dollar by 5.8% in April
Economy

Foreign investors wary of implementing $30 billion investment pledges over FX market instability – PEVCA 

August 18, 2024
KPMG reveals 7 Fault Lines that may distort Nigeria's economy in a new decade
Currencies

Nairametrics 2024 Q3 Outlook: Nigeria needs stable forex to attract FDIs – Olusegun Zaccheaus

July 13, 2024
Uganda
Business News

Uganda named best investment destination in Africa as FDI hits $1.5 billion 

May 9, 2024
FDI
Op-Eds

FDIs are policy driven– Kalu Aja

May 1, 2024
Next Post
How I left Nigeria for Canada

Over 18,000 Nigerians got Canadian permanent residency in 3 years

Leave a Reply Cancel reply

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

first bank








DUNS

Recent News

  • U.S introduces new immigration fees for asylum and work permit applicants, effective July 22 
  • Sabreworks celebrates excellence, rewards outstanding team members with life-changing awards
  • United States appoints Rick Swart as new Consul General to Southern Nigeria 

Follow us on social media:

Recent News

United States extends period for work permits for non-citizens

U.S introduces new immigration fees for asylum and work permit applicants, effective July 22 

July 19, 2025
Sabreworks celebrates excellence, rewards outstanding team members with life-changing awards

Sabreworks celebrates excellence, rewards outstanding team members with life-changing awards

July 19, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 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
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics