Economy: Capital inflow drops to $20.75bn – NBS

Economy: Capital inflow drops to $20.75bn – NBS


The National Bureau of Statistics (NBS) on Thursday released the capita importation report for the 2014 fiscal year.

It stated that the amount of capital brought into the country dropped
by $576.61m or 2.66 per cent from $21.31bn (N4.21tn) in 2013 to
$20.75bn (about N4.1tn) in 2014.

The bureau in the report, which was made available to our
correspondent attributed the decline in the amount of investment
attracted by the economy to low level of investors’ confidence owing
to the build-up to the 2015 elections.

Specifically, it said compared to the fourth quarter investment of
N4.49bn, which the economy attracted, a sharp decline of $2.04bn or
31.22 per cent was recorded from the value of $6.54bn that was
recorded in the third quarter.

It said, “Capital worth a total of $4.49bn was imported to Nigeria in the
fourth quarter of 2014, bucking the upward trend that had been
observed throughout the preceding quarters of 2014. A sharp decline
of $2.04bn or 31.22 per cent was recorded from the value of $6.54bn
that was recorded in the preceding quarter, which represented the
peak value for the year.

“Despite this, the closing quarter of the year 2014 was still greater
than the $3.90bn of capital imported in the opening quarter, by
$595.18m or 15.24 per cent. Total capital imported in the year 2014
summed to $20.75bn, lower by $576.61m or 2.66 per cent from the
$21.31bn that was imported in 2013.

“The annual decline was primarily due to the reduction in the value of
capital imported in the fourth quarter of 2014, which was expected, as
investor confidence is low during the build up to a presidential election, which in Nigeria was scheduled to hold in February of 2015.”

The source of the greatest value of capital imported to Nigeria,
according to the report, continues to be the United Kingdom, with
$1.94bn imported in the fourth quarter of 2014, representing 43.21 per
cent of the total.

It said marginal declines were also observed in the United States,
which is Nigeria’s second largest source of capital, declining by
$54.62m or 4.84 per cent to $1.07bn in quarter four.

The report categorised the investments into three broad segments –
portfolio investment, Foreign Direct Investment and others.
For portfolio investment, the report stated that this made up the
largest portion of the total capital imported.

It said at a fourth quarter value of $2.0bn, portfolio investment
declined by $3.12bn or 60.94 per cent from its quarter three value of
$7.12bn.

It said the decline in portfolio investment was mainly driven by
declines in the value of equity, which at $1.54bn in quarter four of
2014, had declined by $2.22bn or 59.10 per cent from the preceding
quarter.

The NBS report said Foreign Direct Investments increased from a
value of $544.50m in quarter three of 2014, by $224.35m or 41.20 per
cent to reach $768.86m in quarter four.