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Business News of Tuesday, 11 January 2022

Source: sunnewsonline

Nigeria’s capital importation rose 97% to $1.73bn in Q3 2021

The National Bureau of Statistics (NBS) The National Bureau of Statistics (NBS)

The National Bureau of Statistics (NBS) says Nigeria’s capital importation rose to $1.73 billion in the third quarter of 2021.

It explained in its new report released over the weekend that the figure represented a 97.73 percent increase from $875.62 million in the preceding quarter of 2021— and 18.47 percent compared to the corresponding quarter of 2020.

According to NBS, only five states, out of 36 states, and the Federal Capital Territory (FCT) received capital investments in Q3 2021.

Lagos recorded $1.48 billion, accounting for 85.57 percent of the total capital inflow. Others include FCT ($249.19 million), Anambra ($44 million), Kano ($15 million) and Abia ($0.01 million).

“The largest amount of capital importation by type was received through portfolio investment, which accounted for 70.30 percent ($1,217.21 million) of total capital importation. This was followed by other investments, which accounted for 23.47 percent ($406.35 million), and Foreign Direct Investment (FDI) amounted to 6.23 percent ($107.81 million) of total capital imported in Q3 2021,” the report reads.

By sectors, capital importation into financing had the highest inflow of $469.17 million, amounting to 27.10 percent of total capital imported in the third quarter of 2021. This was closely followed by capital imported into the banking sector valued at $460.39 million (26.59 percent) and the production sector $323.83 million (18.70 percent).

Stanbic IBTC Bank Plc ranked highest in Q3 2021 with $537.92 million of total capital investment in Nigeria. This was followed by Standard Chartered Bank ($326.01 million), Citibank Nigeria Limited ($248.30 million), and the UBA ($200 million).

Meanwhile, Providus Bank Plc ($0.03 million), Coronation Merchant Bank ($0.12 million), and Sterling Bank plc ($0.18 million) were the least banks with capital inflows.

The report added that the highest capital importation by country came from the United Kingdom, valued at $709.8 million, representing 40.99 percent. This was followed by capital imports from South Africa and the United States of America valued at $389.54 million (22.50 percent), and $257.12 million (14.85 percent), respectively.

Nigeria imported capital cumulatively worth $4.51 billion between January and September 2021, representing a 47.6 percent decline compared to $8.6 billion recorded in the same period of 2020