Wednesday August 19, 2015 / 06.16PM /National Bureau of Statistics
At $2,666.36 million, the value of capital imported to Nigeria in the second quarter of 2015 represented a marginal drop of $5.24 million or just 0.20% quarter on quarter.
Capital importation thus remained relatively unchanged from the $2,671.59 million recorded in the opening quarter of 2015, suggesting that this new, lower level will be maintained as long as an uncertain economic environment remains.
Year on year, second quarter capital imported was $3,137.53 million or 54.06% lower than the $5,803.89 million imported in quarter two of 2014.
Capital Importation by Investment Type
Capital Importation can be divided into three main investment types: Foreign Direct Investment (FDI), Portfolio Investment and Other Investments, each comprising various subsectors.
Portfolio Investment remained the largest of all investment types, totaling $2,183.15 million in Q2 of 2015, representing 81.88% of all capital imported. This was $322.50 million or 17.33% greater than the $1,860.65 million Portfolio Investment recorded in the opening quarter of 2015, when it represented 69.65% of the total. Nonetheless, year on year, the decline remained large at $2,733.99 million or 55.60%.
Within portfolio investment, the key driver of the quarterly growth observed was Equity, which at 84.56% of portfolio investment, increased by $706.70 million or 62.02% from the preceding quarter.
Growth in Money Market Instruments further contributed, increasing by $270.39 million or 1,674.78% from $16.14 million in Q1 to $286.53 million in Q2 of 2015. The remaining component, Bonds, declined on a quarterly basis, $654.58 million or 92.83%, so that its share of total Portfolio investment declined from 26.39% to just 2.31%. Year on year, all subsectors declined, with Equity suffering the greatest losses, down by $2,029.27 million or 52.36%, accounting for 74.22% of the overall decline.
Other Investments, at $272.07 million, represented 15.58% of total Capital Imported, and held the second largest capital inflows by investment type. Other investments was mainly comprised of Loans, which at $153.23 million represented 56.23% of the total, and Other Claims, which at $117.85 million represented 43.32% of the total. Currency Deposits held the remaining $0.99 million or 0.36%, whilst Trade Credits recorded zero.
Capital Importation by Investment Type, Q2 2015
Other investments declined by $144.27 million or 34.65% from the preceding quarter, driven solely by declines in Loans, which were lower by 231.60 million or 60.18%; Other Claims were up $86.34 million or 274.03%.
Year on year, declines in Other Investments were similar, at $141.69 million or 34.24%, although this time were driven by both Loans, which were lower by $83.76 million or 35.34%, and by Other claims, which were lower by $57.55 million or 32.81%.
FDI was the smallest of the Investment Types in Q2 of 2015, representing $211.14 million or 14.77% of the total. It remains comprised mostly of Equity, at $211.01 million or 99.94% of the total, whilst Other Capital holds the remaining $0.13 million.
Declines were observed both on a quarterly basis and annual basis, of $183.47 million or 46.49% and $261.85 million or 55.36% respectively.