By Adedapo Adesanya
The total value of capital importation into Nigeria dropped by 78 per cent to $1.3 billion in the second quarter of 2020 compared to $5.9 billion reported in the first quarter of 2020.
This was contained in the latest data from the National Bureau of Statistics (NBS) through its Q2 2020 Nigerian Capital Importation report released on Friday, August 28.
The decrease was largely contributed by the COVID-19 pandemic and measures imposed globally to contain the spread of the virus.
According to the report, portfolio investment which had always performed well in previous quarters fell to the second-largest amount of importation by type, declining by 29.8 per cent to $385.3 million.
The report stated that, “The total value of capital importation into Nigeria stood at $1,294.94m in the second quarter of 2020. This represents a decrease of 77.88 per cent compared to Q1 2020 and 78.60 per cent in Q2 2019.
“The largest amount of capital importation by type was received through other investment, which accounted for 58.77 per cent ($761.03m) of total capital imported, followed by portfolio investment, which accounted for 29.76 per cent ($385.32m) and Foreign Direct Investment (FDI), which accounted for 11.47 per cent ($148.59m) of total capital imported in Q2 2020.”
“United Kingdom retained the top source of capital investment in Nigeria in the review quarter, with $428.83 million, accounting for 33.12 per cent of the total capital inflow in Q2 2020.
“By Destination of Investment, Lagos State emerged as the top destination of capital investment in Nigeria in Q2 2020 with $1,130.49m. This accounted for 87.30 per cent of the total capital inflow in Q2 2020.
“By Bank, Standard Chartered Bank Nigeria Limited emerged at the top of capital investment in Nigeria in Q2 2020 with $425.21m. This accounted for 32.84% of the total capital inflow in Q2 2020,” the report stated.
Dipo Olowookere