Home Business Nigeria’s capital importation stood at $21.3bn in 2013, says NBS

Nigeria’s capital importation stood at $21.3bn in 2013, says NBS

by Business News Report

The National Bureau of Statistics (NBS) has said that Nigeria’s capital importation stood at 21.3 billion dollar (N3.42 trillion) in 2013. The figure is higher compared to the 11.2 billion dollar (N1.80 trillion) and 5.7 billion dollar (N917.70 trillion) recorded in 2008 and 2009, respectively.

The data was, however, silent on the import rates for 2010, 2011 and 2012, respectively.

The Statistician-General of the Federation, Dr Yemi Kale, said this in a statement issued in Abuja. The statement explained that the data on capital importation was obtained from the Central Bank of Nigeria (CBN).

“The data is being compiled using information on banking transactions, gathered through Electronic Financial Audit Sub-System (e-FASS) software, which enables automatic reporting of all banking transactions to CBN,’’ the statement said.

It stated that the financial crisis largely shaped capital importation between 2007 and 2013 period.

“From 11.2 billion dollar in 2008, it dipped to a low of 5.7 billion dollar in 2009.

“Yet Nigeria’s rapid recovery attracted higher levels of investment, allowing capital importation to soar to 21.3 billion dollar in 2013, a record high to date.

“The main driver of this growth has been the shares business, which saw a six-fold increase in capital value between the 2007 and 2013, ’’ the statement said.

According to the statement, this has been countered by a decline in the banking business sector, which in converse declined to just 1/5th of its 2007 size.

It noted that in spite of these developments, lower levels of capital importation for both the stock and banking businesses had been observed in the first quarter of 2014, with total importation of 40.8 per cent lower than quarter one of 2013.

“Prior to the global financial crisis, Nigerian capital importation was high and rising; it grew 16.7 per cent from 9.5 billion dollar recorded in 2007 to reach 11.2 billion dollar in 2008.

“The onset of the crisis brought a sharp decline in capital imported to half its value at 5.7 billion dollar in 2009,’’ the statement quoted him as saying.

It said that some of the greatest declines came from the banking and shares sectors, with annual totals 2.0 billion dollar and 1.8 billion dollar, representing a 43.7 per cent and 53.0 per cent decline, respectively, from the preceding year.

“The financing and oil and gas sectors also took a large hit, declining by 69.2 per cent and 82.2 per cent, respectively, translating to a decline of over 500 million dollar in each activity from 2008. In 2010, the value of capital imported remained depressed, increasing by a marginal 5.1 per cent to 5.9 billion dollar,’’ it said. The statement said that a slow recovery began in 2011, as capital importation increased by 31.8 per cent, yet inflows remained 3.3 billion dollar below 2008 levels.

“It was not until 2012 that a transformational upturn took hold in Nigeria, whereby the value of capital imported increased by 110.2 per cent to16.6 billion dollars, 72.6 per cent greater than the pre-crisis level. The main driver of this was the shares business, in which an additional 7.6 billion dollar was imported from 2011 levels, a 72.5 per cent rise from the previous year.

“Banking also saw a recovery with a 740.7 million dollars, or 65.3 per cent increase from 2011,’’ it  statement said.

It stated that yet some sectors remained in decline as financing, telecommunications and breweries reported lower levels of importation by 443.3 million dollar, 193.1 million dollar and 71.3 billion dollar from 2011 respectively. This may have implied less profitability of the real sector relative to the financial sector, thus reallocating investments away from the real sector. Total capital importation inflows continued to increase in 2013, by a further 28.3 per cent to 21.3 billion dollar; the highest value that Nigeria has seen to date,’’ it said.



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