Wednesday, March 14, 2018 /09:06 AM / FBNQuest
NBS recently released its latest report on Nigerian Capital Importation, which
covers Q4 2017. The data was obtained from the CBN and compiled using
information on banking transactions from all registered financial institutions
in Nigeria. The total value of capital imported in Q4 was estimated at
US$5.38bn, representing an increase of 30% q/q.
increase was driven by portfolio investment. When we consider the full year
data, total capital imported into Nigeria stood at US$12.2bn in 2017 compared with
US$5.1bn recorded in 2016. The data are gross, and not adjusted for capital
Portfolio investment increased by 21% q/q
and accounted for the largest share, 65% of total capital importation.
Investment in money market instruments was the primary driver; it represented
63% of the total. Although since Q3 2013 money market flows surpassed equities
once (in Q3 2016), the scale of the flows in Q4 2017 was significant at
US$2.2bn. Equities (c.US$1bn) accounted for 28% of total portfolio investment.
Investment sentiments have improved
significantly due to the more stable fx environment as well as a relatively
positive macroeconomic outlook.
Although foreign direct investment (FDI)
inflows surged by 222% q/q to US$378m, it only accounted for 7% of total
capital importation in Q4. A steady increase in FDI rests upon the government’s
ability to solve the structural issues within the country.
In terms of origination of inflows, the
United Kingdom had the largest share at US$1.6bn, or 30% of the total. The US,
Singapore and UAE represented 18.6%, 7.7% and 4.1% respectively.
Based on trading activities so far this
quarter, we expect the Q1 report when published to show steady inflows from
portfolio investments. The monthly turnover for January and February on the NSE
were US$197m and US$106m respectively, with foreign participation accounting
for about 43%.
Value of Capital Imported into Nigeria in Q4 2017 Estimated at $5,382.89m
Policies Required to Stimulate Broad-Based Growth
- At $65, Oil
is Up 22.4% in 12 Months, Can It Fall Again?? – LBS EBS – March 2018
- Return to
Trade Surplus in 2017
Inflation to Dip to 14.75% in February 2018
FY’17 Trade Report – It’s beginning to look a lot like Yr. 2014
Rate to Drop and PMI Falls Further
- Q4’17 GDP:
Seasonal Rebound in the Non-oil Sector Strengthens Economic Recovery
Merchandise Trade Declined Marginally QoQ but Increased YoY for Q4 2017
and Storage: The Best Performer in Q4 2017