Nigeria Records $9.6m Capital Inflow in 2015, A Decline Of 53.53%-NBS

By Emmanuel Elebeke

Nigeria recorded a total value of $9,643.01 million capital importation in 2015, the National Bureau of Statics has said.

The figure NBS said, represents a 53.53 per cent fall on the previous year, when the total was $20,750.76 million.

In its capital importation quarterly report release on Wednesday for Q3 and Q4 2015, the statistical body said that the total value of capital imported into Nigeria in the 3rd quarter of 2015 was $2,748.10 million, up by 3.07 per cent from the preceding quarter.

This was followed by a total of $1,556.95 million in the fourth quarter, which represents a decline of 43.34 per cent from levels recorded in the previous quarter.

According to the NBS, each consecutive quarter of 2015 saw a larger annual fall than the previous; in the third and fourth quarter, capital inflows were respectively 58.00 per cent and 65.40 per cent lower than in the same quarters of 2014.

The report showed that importation into Nigeria between 2012 and 2014 was markedly higher than in preceding years.

This the report said, may have been a result of external factors, such as the inclusion of Nigeria in the JPMorgan EM Bond index, and globally low interest rates triggering a search for higher yields from investors over this period.

The drop in 2015, according to release may be partly a result of unwinding and as well as the tougher economic environment in Nigeria, resulting from the effect the lower oil price
Capital Importation Data.

NBS further stated that the 3rd quarter also saw a large change in the composition of Capital Importation, noting that in every preceding quarter since 2009, portfolio investment had
been the largest component, as a result of a large quarterly decline in the 3rd quarter (53.73%) and large quarterly increases in foreign direct and other investment (239.93% and 275.36%) respectively), while other investment became the largest component and accounted for $1,021.26 million (37.16%).

In the final quarter 2015, the indication showed a reversal of the change, as although portfolio investment fell by 5.61 per cent between the third and final quarters.

The report further showed that the investment fell by 52.87 per cent and foreign direct investment also fell by 82.84 per cent.

As a result, portfolio investment accounted for 61.18 per cent, other investment accounted for 30.91 per cent, and foreign direct investment accounted for 7.91 per cent.

For the year as a whole, portfolio investment recorded the biggest decrease of 59.74 per cent, but remained the largest component, and accounted for 62.28 per cent, compared to 15.00 per cent for foreign direct and 22.72 per cent for other investment.

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