The total value of capital importation into Nigeria in the second quarter of 2022 was only $1.56 billion. This is a 2.40% decrease from the $1.57 billion recorded in the first quarter of the year.
However, year-on-year, capital importation increased by 75.34%. This is disclosed in the Q2 2022 capital importation report published by the National Bureau of Statistics on Wednesday.
Capital importation is foreign investments into a nation’s economy and are necessary for economic growth as it enables rapid investment.
In Q2 2022, the total capital import stood at $1.56 billion which is a drop from Q1, 2022.
Of the 3 categories of investment that make up capital importation, Portfolio Investment, accounted for 49.33% of the total value of capital importation that came into Nigeria in the second quarter, while other investment contributed 41.09%.
On the other hand, Foreign Direct Investment (FDI) accounted for only 9.58% of the total capital import.
It is worth noting that only “other investments” recorded positive growth in the second quarter.
Capital importation from other investments increased by 36.97%, while portfolio investment and FDI decreased by 20.91% and 5.04%, respectively.
Out of the 26 sectors listed, the banking sector recorded the highest inflow, followed by production, while the consultancy and Information Technology (IT) services received the lowest.
While the banking and production sectors maintained their lead from the last quarter as the sectors with the highest inflow, the consultancy and IT services maintained theirs from the bottom.
5 out of the 26 sectors had zero capital inflow in Q2. It is important to highlight that the weaving sector has not seen any inflow since 2016.
Capital importation by country of origin had the United Kingdom the highest with a value of $781.05 million, which is 50.87% of the total capital import recorded for the quarter.
Singapore and South Africa ranked as the second and third sources of capital imported into Nigeria in Q2.
By destination, Lagos and Abuja attracted the largest share of the capital inflow. While Lagos maintained its lead as Nigeria’s biggest destination of capital inflow with $1.05 billion, Abuja received $453.95 million.
Compared to Q1, the total inflow Lagos received in Q2 dropped by 5.83%. Abuja however recorded 1.60% increase in its total inflow in the quarter under review.
The other 3 states that received capital inflow in Q2 were Anambra, Ekiti and Kogi.
Capital import to Anambra increased from $4.15 million in Q1 to $24.71 in Q2. Although Ekiti did not receive any inflow in Q1, it secured $0.50 million in Q2. Kogi state, on the other hand, received $2 million, its first since 2019.