Total capital flows into Nigeria rose by 138.6% percent year-on-year to $12.2 billion in 2017 from the figure recorded in 2016, according to data released by Nigeria’s statistical agency, the National Bureau of Statistics (NBS) Thursday.
The data put the investment inflow into the country as at the end of the fourth quarter of 2017 at $5,382.9 million, this was an annual growth of 247.5%, and quarterly growth of 29.9%.
As at the end of 2017, total capital imported into Nigeria was $12,228.6 million, an increase of $7,104.4 million or 138.7% from the figure recorded in 2016, according to the Bureau.
The reported stated that the growth in Capital Importation in 2017 was mainly driven by an increase in Portfolio Investment, which went up by $5,516.2 million from the previous year to reach $7,329.1 million in 2017 and accounting for 60% of capital imported.
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During the reference quarter total capital imported, including Foreign Direct Investment (FDI), Portfolio Investment and Other Investments, when compared to the previous quarter increased by $1,237.8 million.
Portfolio Investment, which recorded $3,477.5 million in the 4th quarter of 2017, remained the largest component of capital imported and contributed 64.6% of the total amount ($5,382.86). It increased significantly year on year, recording a rise of 1,123.5 % or $3,193.3 million (from $284.2 million to $3,477.5 million), expanding faster than the two other components of capital importation. Foreign Direct Investment recorded $378.4 million in q4, which is a year-on-year increase of 9.8%, while Other Investment recorded $1,526.9, growing by 66% when compared to quarter 4 of 2016.
The NBS report stated during the fourth quarter of 2017, Abuja and Lagos accounted for over 97 percent of the destination of investment inflow into the country. Abuja attracted $2,680.3 million or 49.8%, an increase of 227.8% from the figure recorded in the third quarter of 2017 ($817.6million), while Lagos, which has always had the highest share of capital importation, had its share drop from 79.5% of total share in q3 2017, to a share of 47.4% in q4, 2017. Other states including Akwa Ibom, Ogun, Oyo, and Delta also attracted foreign capital investments.
The United Kingdom has the highest origin of inflows for Nigeria. It accounted for $1,609.9 million, or 30% of the total of capital inflow in Q4,2017, followed by the United States, which accounted for $1,001.4 million in the same quarter, or 18.6%.
Belgium and Singapore accounted for accounted for 10.2% and 7.7% respectively in the fourth quarter of 2017, the Bureau stated.