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Total Value of Capital Imported into Nigeria in Q3 2017 Estimated at $4,145.1m - NBS

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Monday, November 27, 2017 05:30PM /NBS

Summary

The capital importation into Nigeria in 2017 Q3 recorded a substantial increase compared to the past few quarters, as the economy continued to recover from recession following its exit in Q2 2017.The total capital imported in the third quarter was recorded at $4,145.1 million, more than double the inflow in the second quarter of this year, representing an increased value of 147.5% on a year on year basis. 

This inflow of capital in Q3 2017 is the first time since the beginning of 2015 that capital hit over $4,000 million in a quarter. The
boom in capital importation in Q3 2017 was mainly driven by significant growth in both Portfolio Investment and Other Investment. 

Figure 1: Capital Importation (2015 Q1 - q2 2017Q3)
 

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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. Portfolio Investment, which was recorded at $2,767.4 million in the third quarter of 2017, remained the largest component of capital import and contributed to 67% of the total amount.  

This component expanded faster than the other two main categories with a year on year growth rate of 200.7%.
Foreign Domestic Investment recorded $117.6 million which fell by 65.5% year on year while Other Investment increased by 124.55% compared to 2016 Q3. Although Other Investment in 2017 Q3 more than doubled the value in the third quarter of 2016 from $516.2 million to $1,260.1 million, it remained about 30% of the total capital importation. 

Figure 2: Capital Importation Composition 2016 Q3 & 2017 Q3

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Foreign Direct Investment (FDI)
The total amount of FDI during the quarter was recorded at $117.6 million, which declined by 57.14% compared to the previous quarter and 65.48% compared to 2016 Q3 due to the fall in both Equity and Other Capital investment. This category of capital investment showed a surprising decrease in value when both Portfolio Investments and Other Investment grew strongly over the third quarter. Capital import in the form of Equity recorded $117.5 million and remained the majority of total FDI in the third quarter of 2017 while Other Capital fell from 0.3 to 0.13 million dollars from the second to the third quarter. 
Portfolio Investment
Portfolio Investment in the third quarter more than tripled the figure of the second quarter of the same year, hitting $2,767.3 million. This figure was 200.7% higher than the same quarter in 2016 which was recorded $920.32 million.  The boom of Portfolio Investment was driven by strong growth of Equity and Bonds and a dramatic capital investment increase in the form of Money Market Instruments. 
Other Investment
Other Investment accounted for 30% of the total capital importation in the third quarter of 2017. This category of capital import also grew substantially by 124.55% year on year and by 68.58% quarter on quarter, although not as fast as Portfolio Investment. The $1,260.1 million Other Investment was mainly in the form of Loans, which hits $956.7 million in the third quarter. Other Claims also increased notably to $302.9 million.

Figure 3: Capital Importation by Category - (2016 Q1- 2017 Q3) 

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Capital Importation by Sector
Capital is either imported in the form of Shares, or directly imported by different sectors of the economy. Share capital investment, which is closely related to Equity investment (FDI and Portfolio) was largely responsible for huge increase in capital importation during the quarter.

The percentage of shares kept increasing since the first quarter of 2017 and by the third quarter it accounted for 66.24% of the total capital importation. In the third quarter of 2017, among the $4,145.1 million capital investment, $2,745 million was invested as shares. The amount of Shares investment grew by 324.86% year on year, largely exceeding the already impressive total capital importation growth rate (147.5%). The proportion of Shares compared to total value of capital importation over the previous quarters in illustrated in figure 4.

Figure 4: Proportion of Shares to Total Capital Importation in million $
2013 Q3- 2017 Q3

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In the third quarter of 2017, Servicing became the leading sector which attracted the largest value of capital investment. During the quarter 41.9% foreign capital was invested in servicing sectors, while only 16.07% of the $4145.1 million flowed to Oil and Gas sectors.

Capital Investment to Oil and Gas sectors dropped from $190.39 in the second quarter of 2017 to only $16.07 in the third quarter while capital flow to Servicing sectors grew 303.24% quarter to quarter and 1505.95% year on year. Capital investments to IT, Agricultural and Drilling sectors also increased strongly compared to the same quarter last year. However, the absolute values to these sectors remained small. 

Figure 5:
Capital Importation by Sector and Percentage2017 Q3
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Capital Importation by State
Lagos remained the state attracting most foreign capital in the third quarter of 2017. Lagos is the commercial and financial capital of Nigeria, and home to Nigeria’s Stock Exchange where shares are traded. 

As such, it accounted for most of the capital imported into the country ($3,297.0 million in Q3).
the percentage dropped from 97.07% in the second quarter to 79.54% in the third quarter although the absolute amount was increasing substantially. This was because capital flow to Abuja (FCT) increased even faster and other states including Akwa Ibom, Edo, Ogun which also started attracting foreign capital investments. 

Figure 6: Capital Importation Map by Receiving State in $ millions (2017 Q3)
 

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Capital Importation by Country of Origin
The country from which Nigeria imported the most capital was the United Kingdom, which accounted for $1736.58 million, or 41.89% of the total of capital inflow in 2017 Q3. This value represented a 149.26% increase in capital importation relative to the figure in the previous quarter, and a 58.22% growth over the same period in last year. 

As well as the existence of an historical relationship between the UK and Nigeria, London (the capital of the UK) is also a key financial centre, which explains the high value of foreign capital was invested by the UK. Since 2010, the UK has accounted for the highest value of capital importation in all but two quarters (both in the second half of 2015).

The country accounting for the second largest value of capital importation was the United States. The US accounted for $962.1 million in the third quarter of 2017, or 23.21%.  The US has also been one of the most important investors in Nigeria, usually either the largest or second largest investor country. It also shares a language with Nigeria, it has also been historically the largest economy in the world, and is active in foreign investment globally. The next two largest investors in the third quarter of 2017 were Tanzania (accounting for 7.61%) and Mauritius (5.53%).

Figure 7: Capital imported by Country of Origin in $ millions (2017 Q3) 
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Capital Importation by Bank
Capital is imported through financial institutions into the country. In the third quarter of 2017, the bank through which the highest share of capital was imported was Standard Chartered Bank, which accounted for 25.49% ($1,666.3 million) of the total share, up from the 18.7% share it recorded in the first quarter of the year.

This was followed by Access Bank, which accounted for 16.62% share or ($459.4 million) of capital importation, also grew from a share of 2.65% as recorded in the second quarter of the year. The top four banks—Standard Chartered Bank, Access Bank, Ecobank Nigeria, and Zenith Bank received over 67% of capital importation in the third quarter.

Figure 8: Share of Capital Importation by Bank (2017 Q3) 

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Click Here to Download Q3 2017 Capital Importation (PDF) Report

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Latest 2017 NBS Reports 

Q4 2017

1.       FAAC Disburses N558.08bn in October 2017 -NBS

2.      GDP Grew by 1.40% in Q3’17 from 0.72% in Q2’17; 2nd Consecutive Quarter of Positive Growth

3.      Average Motorcycle Fare per Drop Increased by 4.52% YoY in October 2017

4.      Average Prices of PMS, AGO, HHK and Cooking Gas – October 2017

5.      Headline Inflation Drops to 15.91% in October 2017, 0.07% Lower Than 15.98% September Rate

6.      Average Price of 1kg of Yam Tuber Increased by 10.22% YoY in October 20

7.      596,792 Passengers Travelled Via the Rail System in Q2 2017 - NBS

8.     7.71m Workers Are Registered Under the Pension Scheme as at Q3 2017 - NBS

9.      Daily Energy Generation Attained a Peak of 3,880MW in Q3 2017 - NBS

10.  FAAC Disburses N637.70bn in September 2017 - NBS

11.   GDP by Income and Expenditure Approach – Basic Price GDP Declined by 1.73% Real Term in Q4’16

12.  N246.30bn Generated as VAT in Q2 2017 - NBS

13.  Lagos State Has 7,396 Prison Inmates Population in 2016 - NBS

14.  Average Prices of PMS, AGO, HHK and Cooking Gas - September 2017

15.   Average Air Fare Increased by 31.31% YoY in September 2017

16.  Average Price of 1kg of Yam Tuber Increased by 28.65% YoY in September 2017

17.   CPI Drops to 15.98% in Sept 2017, 0.03% Lower Than 16.01% August Rate

18.  Multiple Indicator Cluster Survey 2016-17

19.  Pension Fund Asset under Management as at 31 December 2016 stood at N6,164.76bn - NBS

20. 835.58m Crude Oil Processed from 1997 to 2014

21.  N701.85bn Gross Revenue Generated in July 2017

Q3 2017

22. FAAC Disburses N467.85bn in August 2017 - NBS

23. Lagos Accounted for 74.8% of International Passenger Traffic in Q2 2017

24. Lagos State Has the Highest Foreign and Domestic Debts as at June 2017

25.  CPI Drops to 16.01% in August 2017, 0.04% Lower Than 16.05% July Rate

26. Average Air Fare Increased by 32.75% YoY in August 2017

27.  Average Prices of PMS, AGO, HHK and Cooking Gas - August 2017

28. Average Price of 1kg of Yam Tuber Increased by 53.98% YoY in August 2017

29. Nigeria’s Merchandise Trade Grew Marginally QoQ but Significantly YoY in Q2 2017

30. 2,287 Drug Abuse Convictions Secured in 2016 - NBS

31.  Average Price of 1kg of Tomato Increased YoY by 15.65% in July 2017 - NBS

32. Average Prices of PMS, AGO, HHK and Cooking Gas - July 2017

33. Average Intercity Fare Increased YoY by 27.49% in July 2017 - NBS

34. CPI Drops to 16.05% in July 2017, 0.05% Lower Than 16.10% June Rate

35.  Total Value of Capital Imported into Nigeria in Q2 2017 Estimated at $1,792.3m - NBS

36. FAAC Disburses N652.23bn in July 2017 - NBS

37.  Active Voice Subscribers Dropped by 6.67% in Q2 2017 – NBS

38. Banking Sector Records 327.37m Volume of Transactions in Q2 2017 - NBS

39. 870,397 Candidates Sat for NECO in June and July 2016

40. 3,457 Nigerians Repatriated from Abroad in 2016 – NBS

41.  Corruption in Nigeria - Bribery as Experienced by the Population

42. Nigeria Produced 656.8m Barrels of Crude Oil in 2016

43. 2,503 Road Traffic Crashes Recorded in Q2 2017 - NBS

44. Daily Energy Generation Attained a Peak of 4,079MW in Q2 2017 - NBS

45.  7.59m Nigerians Are Registered Under the National Pension Scheme as at Q2’17 - NBS

46. FAAC Disburses N462.36bn in June 2017 - NBS

47.  NBS Annual Abstract of Statistics 2016

48. Average Prices of PMS, AGO, HHK and Cooking Gas Price Watch - June 2017

49. Average Intercity Transport Fare Decreases to N1,559.68 in Jun’17 from N1,565 in May’17

50. Average Price Of 1kg Of Yam Tuber Increased YoY by 32.84% in June 2017 -NBS

51.   CPI Drops to 16.10% in June 2017, 0.15% Lower Than 16.25% May Rate 

Q2 2017

52.  FAAC Disburses N418.82bn in May 2017 - NBS

53.  GDP By Income and Expenditure Approach – Basic Price GDP Declines by 2.3% in Q3’16 - NBS

54.  Average Price Watch of PMS, AGO, HHK and Cooking Gas - May 2017

55.   Average Intercity Transport Fare Decreases to N1,5865. in May’17 from N1,587.04 in Apr’17

56.  Average Price Of 1kg Of Yam Tuber Increased YoY by 52.69% in May 2017 - NBS

57.  CPI Drops to 16.25% in May 2017, 0.99% Lower Than 17.24% April Rate

58. N204.77bn Generated as VAT in Q1 2017 - NBS

59.  125,790 Cases of Reported Offences Recorded in 2016 - NBS

60. Labour Productivity Rose to N684.43 in 2016 - NBS

61.  Merchandise Trade Grew By 0.1% - Positive Trade Balance Due to Rising Exports & Falling Imports

62. Unemployment Rate Rises to 14.2% in Q4’16 from 13.9% in Q3’16 - NBS

63. Lagos Airport Accounted for 76.5% of International Passengers in Q1 2017 - NBS

64. FAAC Disburses N496.39bn in April 2017 - NBS

65.  Banking Sector Records 304.31 mln Volume of Transaction in Q1 2017 - NBS

66. Total Value of Capital Imported into Nigeria in Q1 2017 Estimated at $908.27m - NBS

67.  GDP Contracts by -0.52% in Q1’17 from -1.73% in Q4’16; 5th Consecutive Quarter of Contraction

68. Average Prices of PMS, AGO, HHK and Cooking Gas Price Watch – April 2017

69. Average Intercity Transport Fare Increases to N1,587.04 in Apr’17 from N1,466.46 in Mar’17

70. Average Prices of 1kg of Yam Tubber Increased by 42.45% YoY in April 2017

71.   CPI Drops to 17.24% in April 2017, 0.02% Lower Than 17.26% March Rate

72.  Lagos, Rivers Top IGR for Full Year 2016

73.  Telecoms Subscribers Dropped by 1.33% in Q1 2017 - NBS

74.  Nigeria Imports 4.05bn Litres of PMS in Q1 2017 - NBS

75.  Lagos State has the highest domestic and foreign debt profile in 2016 - NBS

76.  2,556 Road Traffic Crashes Recorded in Q1 2017 - NBS

77.  FAAC Disburses N466.93bn in March 2017

78. Daily Energy Generation Attained a Peak of 5,846 MW in Q1 2017 - NBS

79.  Average Prices of PMS, AGO, HHK and Cooking Gas Price Watch - March 2017

80.Average Intercity Transport Fare Increases to N1,466.46 in Mar’17 from N1,411.87 in Feb’17

81.  Average Prices of 1kg of Yam Tubber Increased by 63.4% YoY in March 2017

82. CPI Drops to 17.26% in March 2017, 0.52% Lower Than 17.78% February Rate

83. 7.49m Nigerians Are Registered Under the National Pension Scheme As At Q1 2017 - NBS

84. Lagos Airport Accounted for 69.1% of International Passengers in 2016 - NBS

 

Q1 2017

85. 11,363 Road Traffic Crashes Recorded in 2016 - NBS

86. FAAC Disburses N514.15bn in February 2017

87. FAAC Disburses N430.16bn in January 2017

88.Average Intercity Transport Fare Decreases to N1,411.87 in Feb’17 from N1430.63 in Jan’17

89. Average Price of 1kg of Rice Increased by 68% YoY in February 2017

90. Average Prices of PMS, AGO, HHK and Cooking Gas Price Watch - February 2017

91.  CPI Drops to 17.78% in February 2017, 0.94% Lower Than 18.72% January Rate

92. Nigeria Produced 43.49m Tons of Solid Minerals in 2016 - NBS

93. NIPOST Generates N8.84bn Revenue in 2016 - NBS

94. Q4 2016 Merchandise Trade Intensity - Total Trade Grows by 6.5% in 2016

95.  Merchandise Trade Grows in Q4 2016 - Records First Quarterly Positive Trade Balance Since Q4 2015

96. GDP Contracts by -1.30% in Q4 and -1.51% for Full Year 2016; Is Nigeria on Its Way Out of Recession?

97.  JAMB Received 11.7m Applications Between 2010 and 2016

98. Average Kerosene Price Increases to N433.84 in Jan'17 from N231.85 in Dec'16

99. Average Intracity Transport Fare Increases to N122 in Jan'17 from N84.29 in Dec'16

100.         Average Cooking Gas Price Increases to N2,567.56 in Jan’17 from N2,002.16 in Dec’16

101.          Average Diesel Price Increases to N240.52 in Jan’17 from N196.20 in Dec’16

102.         Average Petrol Price Increases to N148.7 in Jan'17 from N146.7 in Dec'16

103.         CPI Rises to 18.72% in January 2017, 0.17% Higher Than 18.55% December 2016 Rate

104.         GENCOs Issued Total Invoice of N331bn to DISCOs in 2016

105.          Nigeria Produced 5.79 mln Tonnes of Fish Between 2010 and 2015

106.         4,296 Applications Were Received by NAFDAC for New Products Registration in 2016 - NBS

107.          19,833 Vessels Berthed At Nigerian Ports Between 2013 and 2016 - NBS

108.         Total Value of Capital Imported into Nigeria in Q4 2016 Estimated at $1,548.88mln - NBS

109.         Telecoms Sector Contributes N1,399bn to GDP in Q3 2016 - NBS

110.          FAAC Disburses N426.88bn in December 2016 - NBS

111.            Banking Sector Records 910.18m Volume of Transaction in 2016 on Electronic Payment Channels - NBS

112.           Daily Energy Generation Attained a Peak of 3,859.59MW in Q4 2016 - NBS

113.           10.8% of Nigeria's Total Working Population Are Registered Under The National Pension Scheme - NBS

114.           Nigeria Imports 4.83 bn Litres of PMS in Q4 2016 - NBS

115.           72.53% of Nigeria’s Prison Population in 2015 were Un-sentenced - NBS

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