The National Bureau of Statistics (NBS) has said that the total value of capital importation into Nigeria in the second quarter of 2020 stood at $1,294.94 million, representing a decrease of -77.88% compared to Q1 2020 and -78.60% in Q2 2019.
According to its Nigerian Capital Importation (Q2 2020) report published on the NBS website on Friday, the largest amount of capital importation by type came through Other investment and accounted for 58.77% ($761.03m) of total capital imported.
The release showed that Portfolio Investment accounted for 29.76% ($385.32m), while Foreign Direct Investment (FDI), accounted for 11.47% ($148.59m) of total capital imported in Q2 2020.
By sector, Capital importation by shares dominated in Q2 2020 reaching $464.57m of the total capital importation in Q2 2020. The United Kingdom was top source of capital investment to Nigeria in Q2 2020 with $428.83m or 33.12% of the total capital inflow in Q2 2020.
By Destination of Investment, Lagos state emerged as the top destination of capital investment in Nigeria in Q2 2020 with $1,130.49m. This accounted for 87.30% of the total capital inflow in Q2 2020.
Standard Chartered Bank Nigeria Limited emerged at the top of capital investment in Nigeria in Q2 2020 with $425.21m. The figure represented 32.84% of the total capital inflow in Q2 2020. According to the NBS report, the $1.29 billion was the lowest inflows recorded since Q1 2017 when capital inflow of $908.3 million was recorded. Portfolio investment followed with $385.32 million, accounting for 29.8% of the total inflows in Q2 2020.
The report showed that under the portfolio category, only Equity ($52.3 million) and money market instruments ($332.1 million) received inflows during the quarter under review.
FDI accounted for only 11.47% ($148.6 million) to the total capital inflows or 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. The report showed 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%).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).
The report revealed that in terms of destination, only 6 states – Lagos, Abuja, Ogun, Niger, Anambra and Kano received capital inflows in the second quarter of 2020, with Lagos State receiving the giant share with $1.13 billion (87.3%) capital inflows.