Total Value of Capital Importation into Nigeria Stood at $5,513.55m in Q2 2018 - NBS

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Monday, August 20, 2018 06:50 PM / NBS

Summary

The total value of capital importation into Nigeria stood at $ 5,513.55 million in the second quarter of 2018. This was a decrease of 12.53% compared to Q1 2018, but a 207.62% increase compared to the second quarter of 2017. The decline recorded in the second quarter was as  a result of a decline in Portfolio and Other Investments, which declined by 9.76% and 24.07% respectively. The largest amount of capital importation by type was received through Portfolio investment, which accounted for 74.7% ($4,119.5m) of total capital importation, followed by Other Investment, which accounted for 20.5% ($1,132.8m) of total capital, and then Foreign Direct Investment FDI, which accounted for 4.7% ($261.4m) of total capital imported in the second quarter.

Figure 1: Capital Importation (2015 Q2 - 2018 Q2)

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Capital Importation by Type

Capital Importation can be divided into three main investment types: Foreign Direct Investment (FDI), Portfolio Investment and Other Investments, each comprising various sub-categories. Since 2017 Q2, Portfolio Investment has been expanding faster than the other two categories. Although the absolute value of Portfolio Investment declined in Q2 on a quarterly basis, falling from $4,565.09 million in Q1, 2018 to $4,119.46 million in Q2, 2018, it remained the largest component of the total Capital Importation in the quarter under review, followed by Other Investments, and then FDI. The chart below shows the composition of Capital Importation in Q2, 2017 and Q2, 2018.

Figure 2: Capital Importation Composition Q2, 2017 & Q2, 2018

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Foreign Direct Investment (FDI)

In the second quarter of 2018, total Foreign Direct Investment stood at $261.35m, growing by 5.97% from the first quarter of the same year, but falling by 4.75% when compared to the corresponding quarter of last year. FDI represented only 5% of the total capital import. Equity Investment dominated FDI in the second quarter, accounting for 97.85% of total FDI received in the second quarter. Capital Importation in the form of Other Capital saw significant expansion, from only $5,000 as recorded in Q1 to $5.63 million in Q2, an increase of over 1000percent compared to the same period of last year.

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Portfolio Investment

Portfolio Investment remained the most significant component of total capital inflow into Nigeria in the second quarter of 2018, although it contracted by 9.76% over the previous quarter. The total value of Portfolio Investment in Q2 recorded was $4,119.46 million, which was a 434.64% growth compared to Q2, 2017 ($770.51 million). The 9.76% Q-on-Q decrease was due to a fall in the largest sub-component-- Money Market Instruments. Capital Importation in the form of Money Market Instrument stood at $2,670.93 million in the second quarter, which was a 24.29% decrease over the previous quarter. Investments in both Equity and Bonds (under Portfolio Investments) reported steady quarter-on-quarter growth, with 49.43% and 19.13% respectively. It is worth noting that investments in Bonds under this Capital Importation type has been steadily increasing since Q2, 2017, and in Q22018 , it accounted for 9.71% of total Portfolio Investment.

Figure 3: Composition of Portfolio Investment

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Other Investments

Other Investments amounted to $1,132.75 million in the second quarter of 2018. This category continued its decline since the beginning of 2017, from $1,526.9m in Q4, 2017 down to $1,491.9 in Q1, 2018, and further falling by 24.07% in Q2, 2018. This category accounted for 20.5% of total Capital Importation in the second quarter of 2018. As in previous periods, Other Investment was dominated by Loans ($1,121.66 million), which accounted for over 99% of Other Investments in the reviewing quarter. Other Claims fell sharply, from $223.49 million in Q1 to $11.08 million in Q2. Trade Credits and Currency Deposits posted no inflow in the second quarter of 2018.

Figure 4: Composition of Other Investment  (2015 Q2- 2018 Q2)

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Capital Importation by Sector

By sector, Capital could be imported either in the form of Shares or directly imported into different economic sectors of the economy. Capital importation as shares, which is closely related to Equity investment (FDI and Portfolio Investment) dominated the second quarter of 2018 reaching $4,091.55 million, or 74.21% of the total capital Importation in the quarter. The contribution of Share investment increased marginally by 0.03% in the second quarter of 2018.

Figure 5: Proportion of Shares to Total Capital Importation in $ million (2014 Q1- 2018 Q2)

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A total of $1,422.15 million or 25.79% of the total foreign capital was directly invested in different economic sectors in Q2,2018. This was a decline of 43.36% from the $2,510.90 million recorded in the previous quarter. In the second quarter of 2018, the Servicing sector became the leading recipient of foreign capital Inflow into Nigeria, attracting $479.85 million. The banking sector, which followed, recorded $294.96 million in the second quarter of the year, a considerable reduction from the $1,180.01 million realised in Q1, 2018. Production, Financing and Agriculture sectors received $479.9million, $150.32 million and $104.97 million in foreign capital investment respectively in the second quarter. These five economic sectors together accounted for over 87% of the total capital investment (excluding Shares). The Trading sector attracted $60.35 million in q2, 2018 which was a significant growth from the $27.33 million recorded in previous quarter. The IT Service sector also had substantial improvement in foreign capital inflow in the quarter under review, recording a value of $48.04 million in q2, 2018, up from the $1.10 million recorded in the first quarter.

Figure 6: Capital Importation by Sector 2018 Q2

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Capital Importation by State

The Federal Capital Territory, Abuja, at $2,547.73 million, maintained its lead among recipients of capital import in the second quarter of 2018 after surpassing Lagos in the fourth quarter of 2017. This represented 46.21% of the total capital importation into Nigeria in the quarter under review, and was followed by Lagos which received the second largest amount of capital inflow, $1,267.65 million or 30.08% of the total. When compared to the preceding quarter, however, the capital inflow into Abuja and Lagos, declined by 28.13% and 37.80% respectively. Abia State received $1,267.65 million, accounting for 22.99% of the total capital importation in the quarter. Abuja, Lagos, and Abia together represented more than 99% of the total capital import in the second quarter. Foreign capital investment in Akwa Ibom and Ogun recorded $16.10 million and $12.74 million respectively, a decline of 63.09% and 48.05%, over the previous quarter. Enugu, which only had marginal foreign inflow previously, recorded $1.31 million in the second quarter and became the eighth top destination in Nigeria to attract foreign capital investment.

Figure 7: Capital Importation Map by State in $ (2018 Q2)

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Capital Importation by Country of Origin

The United Kingdom maintained its top position as source of capital investment in Nigeria in the second quarter of 2018, with $1,772.53 million. This accounted for 32.15% of the total  capital inflow in Q2,2018, but was a 21.29% decline from the previous quarter. Since 2010, the UK has accounted for the highest amount of capital importation in all but two quarters (both in the second half of 2015).

The US recorded $1,224.09 million total Capital Importation into Nigeria in the second quarter of 2018, which was a 2.85% decline from the amount recorded in the first quarter of 2018. The US has also been one of the most important origins in Nigeria, usually either the largest or second largest investor country.

Capital imports from the United Arab Emirates was $535.98 million while $297.32 million was imported from Switzerland. Capital inflow from Ghana in the second quarter of 2018 was $156.30, which was a 58.88% decline from the previous quarter.

Figure 8a: Capital Importation by Country of Origin in $ millions (2018 Q2)

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Figure 8b: Capital Importation by Country of Origin in $ millions (2018 Q2)

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Capital Importation by Bank

Capital is imported through financial institutions into Nigeria. In the second quarter of 2018, the bank through which the highest share of capital flowed was Stanbic IBTC Bank, accounting for 54.9% of the total foreign capital inflow, slightly up from the 48.5% share recorded in the previous quarter. This was followed by Standard Chartered Bank, CitiBank, Access Bank and Zenith Bank which accounted for 14.82%, 13.11%, 3.61% and 3.52% of the total capital importation in the second quarter of 2018 respectively. Together, the six banks accounted for nearly 90% of capital importation in Q2 2018.

Figure 10: Capital Importation by Banks  (2018 Q2)

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Click Here to Download Q2 2018 Capital Importation PDF Report

 

Latest 2018 NBS Reports

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Q3 2018

1.       Banking Sector Records 509.67m Volume of Transactions in Q2 2018 - NBS

2.      Average Fare Paid by Commuters for Bus Journey Intercity Increased by 0.30% MoM to N1,733.33 in July

3.      Average Price of 1kg of Yam Tuber Decreased by 1.75% MoM to N280.83 in July 2018 - NBS

4.      Headline Inflation Drops to 11.14% in July 2018; 0.09% Lower Than June 2018 Rate

5.      Average Prices of PMS, AGO, HHK and Cooking Gas – July 2018

6.      FAAC Disburses N821.86bn in July 2018 – NBS

7.      FAAC Disburses N668.90bn in June 2018 – NBS

8.     4.79bn Litres of PMS Imported into Nigeria in Q2 2018 - NBS

9.      6,999 Products Were Presented for Registration Approval in 2017 - NBS

10.  Nigeria Produced 45.74m Tons of Solid Minerals in 2017 - NBS

11.   147,823 Domestic Passengers Moved by 41 Private Jet Operators in 2017 - NBS

12.  Average of 92,747MWh of Energy Generated Daily in Q1 2018

13.  GDP By Income and Expenditure Approach 2017 - Household Final Consumption Fell by -0.99% in 2017

 

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Q2 2018

14.  Average Price of 1kg of Yam Tuber Increased MoM by 4.93% to N305.70 - NBS

15.   Average Intracity Transport Fare Increased MoM by 1.53% to N168.90 - NBS

16.  Average Prices of PMS, AGO, HHK and Cooking Gas – June 2018

17.   Headline Inflation Drops to 11.23% in June 2018; 0.37% Lower Than May 2018 Rate

18.  134,663 Crime Cases Were Reported in 2017 - NBS

19.  FAAC Disburses N701.02bn in May 2018 - NBS

20. Average Prices of 1kg of Tomato Increased MoM by 6.10% to N307.14 in May 2018 - NBS

21.  Average Water Transport Fare Increased By 0.57% MoM in May 2018 - NBS

22. Headline Inflation Drops to 11.61% in May 2018; 0.87% Lower Than April 2018 Rate

23. Average Prices of PMS, AGO, HHK and Cooking Gas – May 2018

24. Merchandise Trade in Both Directions Grew Significantly in Q1 2018

25.  7.98m Workers Are Registered Under The Pension Scheme as at Q1 2018 - NBS

26. 5.67bn Litres of PMS Imported in Q1 2018 - NBS

27.  FAAC Disburses N638.09bn in April 2018 - NBS

28. 2,482 Road Traffic Crashes Occurred in Q1 2018 - NBS

29. Nigeria’s GDP Grew in Real Terms by 1.95% in Q1 2018

30. N269.79bn Generated as VAT in Q1 2018 - NBS

31.  Average Price of 1kg of Tomato Increased by 8.38% MoM in April 2018 - NBS

32. Average Fare for Bus Journey Within City Increased by 3.88% MoM in April 2018 - NBS

33. Headline Inflation Drops to 12.48% in April 2018; 0.86% Lower Than March 2018 Rate

34. Average Prices of PMS, AGO, HHK and Cooking Gas – April 2018

35.  Total Value of Capital Imported in Q1 2018 Stood at $6,303.63m - NBS

36. Banking Sector Records 457.23m Volume of Transactions in Q1 2018 - NBS

37.  FAAC Disburses N647.39bn in March 2018 –NBS

38. 720,958 Passport Applications Received in 2017 - NBS

39. 309,713kg of Drug Seized in 2017 - NBS

40. Average Intercity Bus Fare Decreased by -5.63% MoM in March 2018

41.  Average Price of Tomato Decreased by -0.58% YoY in March 2018

42. Headline Inflation Drops to 13.34% in March 2018; 0.99% Lower Than February 2018 Rate

43. Average Prices of PMS, AGO, HHK and Cooking Gas – March 2018

44. Updated 2017 IGR Report – Osun State Grows IGR by 32.04% in FY 2017

 

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Q1 2018

1.       FAAC Disburses N635.55bn in February 2018 - NBS

2.      Lagos State Has The Highest Domestic and Foreign Debts as at December 2017 - NBS

3.      States Generate N931.23bn as IGR in 2017 - NBS

4.      Average Air Fare Increased by 1.47% MoM in February 2018 - NBS

5.      Average Price of 1kg of Yam Tuber Increased by 7.10% YoY in February 2018 - NBS

6.      Headline Inflation Drops to 14.33% in February 2018; 0.8% Lower Than January 2018 Rate

7.      Average Prices of PMS, AGO, HHK and Cooking Gas – February 2018

8.     Lagos, Abuja, Port Harcourt, Owerri and Kano Airports Served Over 92% of Total Passengers in Q4 2017

9.      4,175 Ocean Going Vessels Recorded at Nigerian Ports in 2017

10.  Total Value of Capital Imported into Nigeria in Q4 2017 Estimated at $5,382.89m - NBS

11.   Nigeria’s GDP Grows in Real Terms by 1.92% in Q4 and 0.83% for Full Year 2017

12.  FAAC Disburses N655.18bn in January 2018 – NBS

13.  N254.10bn Generated as VAT in Q4 2017 – NBS

14.  Total Active Voice Subscription Increased by 3.69% in Q4 2017 – NBS

15.   18.36bn Litres of PMS Distributed State-wide in 2017 – NBS

16.  5.84m Students Enrolled in Junior Secondary Schools in 2016 - NBS

17.   2,489 Road Traffic Crashes Occurred in Q4 2017 - NBS

18.  Average Air Fare Increased by 7.34% YoY in January 2018 - NBS

19.  Headline Inflation Drops to 15.13% in January 2018; 0.24% Lower Than 15.37% December Rate

20. Average Prices of PMS, AGO, HHK and Cooking Gas – January 2018

21.  7.82m Workers Are Registered Under the Pension Scheme as at Q4 2017 - NBS

22. Daily Energy Generation Attained a Peak of 94,627MWh in Q4 2017 - NBS

23. Banking Sector Records 461.98m Volume of Transactions in Q4 2017 - NBS

24. 77.5m Persons Engaged in Some Sort of Economic Activities in Q3 2017 - NBS

25.  Average Fare Paid by Passengers for Water Transport Increased by 6.05% MoM to N631.55 in Dec 2017

26.   Average Price of 1kg of Yam Tuber Decreased by -3.67% YoY to N211.61 in December 2017 - NBS

27.  Headline Inflation Drops to 15.37% in December 2017; 0.53% Lower Than 15.90% November Rate

28.  Average Prices of PMS, AGO, HHK and Cooking Gas – December 2017

29.  Active Voice Subscribers Dropped by 8.73% in Q3 2017 – NBS

30.  Inequality in Nigeria Worsened Between 2004 and 2013 But Improved in 2016 – NBS

31.   FAAC Disburses N609.96bn in December 2017 – NBS

 

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