Capital import declines as foreign investors engrave in low beat sentiment. The amount of capital injected into the economy in the third quarter of 2019 stood at $5.36 billion, the National Bureau of Statistics (www.nigeriastats.gov.ng) said.
The review of the amount indicates that a 7.78% reduction when compares to the previous quarter in the same year.
On a year on year basis, it means that capital flow into the economy slipped at about 80%.
Again, portfolio investment led the pack of investable funds that hunted opportunities in the Nigeria’s economy at the time
The numbers indicated that the largest amount of capital imported by type was received through portfolio investment account
It accounted for some 55.88%, thus translated to $2.99 billion of total sum capital importation.
On a sectorial basis, foreign investors favoured capital injection into banking industry as financial segment receipt stood at $1.75 billion of the total capital importation within the period.
At $2.16 billion, other investment line represented 40.39% of the capital injected. Meanwhile, the much needed foreign direct investment (FDI) came quite weak.
Of the sum injected by foreign investors into the economy in the third quarter of 2019, FDI accounted for 3.73 per cent at total sum of $200.08 million.
The United Kingdom put $2.01 billion in the economy in the period. This represents 37.47% of the total capital inflow in the third quarter of 2019.
Lagos is the most preferred destination for foreign investors, with the largest inflow of foreign capital of $4.97 billion.
This accounted for 92.71 per cent of the total capital inflow in third quarter 2019.
Stanbic IBTC Bank Plc was foreign investors’ conduits that received $1.63 billion or 30.38% of the total imported capital in the third quarter of 2019.
Analysts say macroeconomic environment is largely tense, and foreign investors are more likely to wait by the side until things settle from monetary and fiscal policies perspectives.
