Foreign capital inflow hits $4.145b in Q3, says NBS

The National Bureau of Statistics (NBS) has said that the capital importation into the county recorded an increase to $4.145 billion in the third quarter of 2017.

In a statement yesterday in Abuja, the NBS noted that the capital importation into Nigeria in the third quarter of 2017 recorded a substantial increase compared to the past few quarters.

This, it said, was occasioned by the continuing economic recovery from recession following its exit in the second quarter of 2017.The bureau said the total capital imported in the third quarter amounted to $4.145 billion, which is more than double the inflow in the second quarter of this year, representing an increase 147.5 per cent on a year on year basis.

This is the first time since the beginning of 2015 that capital inflow had hit over $4 billion in a quarter.The NBS noted that the boom in capital importation in Q3 2017 was mainly driven by significant growth in portfolio and other investments.

It explained that capital importation could be divided into three main investment types: Foreign Direct Investments (FDIs), Portfolio Investment and other Investments, each comprising various sub-categories.

Portfolio Investment recorded $2.767 billion in the third quarter of 2017, making it the largest component of capital inflow, as it contributed 67 per cent of the total amount.

This component expanded faster than the other two main categories with a year on year growth rate of 200.7 per cent.The NBS disclosed that FDIs recorded $117.6 million, which fell by 65.5 per cent year on year while Other Investment increased by 124.55 per cent compared to the third quarter of 2016.

Although other investment in 2017 Q3 more than doubled the value in the third quarter of 2016 from $516.2 million to $1.260 billion, it remained about 30 per cent of the total capital importation.