The National Bureau of Statistics (NBS) has said that the total amount of foreign capital attracted by the Nigerian economy in 2017 stood at $12.2 billion. The Bureau in its report published on its website said “The total capital imported in the fourth quarter of 2017 was $5.3829 billion, this was an annual growth of 247.5 per cent, and quarterly growth of 29.9 per cent.
“As at the end of 2017, total capital imported into Nigeria was $12.2286 billion, an increase of $7.1044 billion or 138.7 per cent from the figure recorded in 2016. The growth in Capital Importation in 2017 was mainly driven by an increase in Portfolio Investment, which went up by $5.5162 billion from the previous year to reach $7.3291 billion in 2017, and accounting for 60 per cent of capital imported. During the reference quarter total capital imported when compared to the previous quarter increased by $1.2378 billion.
The NBS also put capital inflow in the fourth quarter at $5.32 billion making it the strongest in the year under review. The report revealed that investments in portfolio assets were the highest last year by 59 per cent, while other investments jumped by 32 per cent and investments into the real economy were mere eight per cent. In terms of origination, the NBS stated that Nigeria had the bulk of its foreign inflow from the United States, the United Kingdom, and Belgium.
It said “Capital Importation is divided into three main investment types Foreign Direct Investment (FDI), Portfolio Investment and Other Investments, each comprising various sub-categories. Portfolio Investment, which recorded $3.4775 billion in fourth quarter of 2017, remained the largest component of capital imported and contributed 64.6 per cent of the total amount ($5,382.86). It increased significantly year on year, recording a rise of 1,123.5 per cent or $3,193.3 million (from $284.2 million to $3.4775 billion), expanding faster than the two other components of capital importation. Foreign Direct Investment recorded $378.4 million in quarter 4, which is a year on year increase of 9.8 per cent, while Other Investment recorded $1.5269billion, growing by 66 per cent when compared to quarter 4 of 2016.
“In Q4 2017, Foreign Direct Investment hit $378.4 million for the first time since Q4 2015 when it reported $123.2 million. This figure in q4 2017 was a substantial increase of 221.8 per cent when compared to the 3rd quarter, and a 9.8 per cent increase compared to Q42017. The growth in FDI was mainly driven by Equity Investments, which contributed 99.8 per cent, while Other Capital Investment contributed 0.2 per cent.
According to NBS “Portfolio Investment was the main driver of Capital Importation in the fourth quarter of 2017, with an amount of $3.4775 billion, representing a quarter on quarter growth of 25.7 per cent. Year on year, it increased by 1,123.5 per cent, which is over twelve times the figure recorded in Q4 2016($284.2 million). The increase in Portfolio Investment was driven by a strong growth in Money Market Instruments, which recorded $2.1788 billion, the first time since Q3 2013. Money Market Instruments contributed 63 per cent to Portfolio investments. Equity which had been the main driver of Portfolio investments in previous quarters dropped by $942.9 million, from $1.9321 billion in Q3 to $989.2 million in Q4 2017. On the other hand, Bonds recorded an increase of $194.1 million, from$115.4million in Q3 to $309.5 million in Q4 of the same year.”
