The National Bureau of statistics on Monday released the Nigeria capital importation report, which stated that "The total value of capital imported into Nigeria in the third quarter of 2016 was estimated to be $1,822.12million and this represent an increase of 74.84% relative to the second quarter of 2016 ($1,042million) and a decline of 33.70% in the third quarter of 2016 relative to the third quarter of 2015 ( $2,672million)."
In the report given it was made known to us that the highest level of capital imported was in August 2016($894million),the highest level since July 2015.
In September ($649.76million) was imported and it was still more than any month in the first and second quarters.
In this quarter,a number of investment types contributed to the quarterly increase.
From the analysis of the report it was stated that "each type of investment (Foreign Direct Investment, Portfolio and Other) recorded quarterly increase by 84.84%($184.3m in Q2 2016 - $340.64m in Q3 2016),172.84%($337.3m in Q2 2016 - $920.32m in Q3 2016) and 7.80%($520.6m in Q2 2016 - $561.61m in Q3 2016) respectively but year on year growth rates remained negative; FDI, Portfolio and Other Investment declined by 52.54%($717.72m in Q3 2015 - $340.64m in Q3 2016), 8.80%($1,009.13m in Q3 2015 - $920.32m in Q3 2016) and 45.05%($1021.2m in Q3 2015 - $520.6m in Q3 2016).
From the analysis of the report it was stated that "each type of investment (Foreign Direct Investment, Portfolio and Other) recorded quarterly increase by 84.84%($184.3m in Q2 2016 - $340.64m in Q3 2016),172.84%($337.3m in Q2 2016 - $920.32m in Q3 2016) and 7.80%($520.6m in Q2 2016 - $561.61m in Q3 2016) respectively but year on year growth rates remained negative; FDI, Portfolio and Other Investment declined by 52.54%($717.72m in Q3 2015 - $340.64m in Q3 2016), 8.80%($1,009.13m in Q3 2015 - $920.32m in Q3 2016) and 45.05%($1021.2m in Q3 2015 - $520.6m in Q3 2016).
The report also stated that most of the quarterly increase in the value of capital importation came from debt financing.
In terms of Capital Importation by investment types it was stated that
"In the third quarter of 2016, Portfolio Investment was the largest component of imported capital and accounted for $920.32 million, or 50.51% based on it's Equity, Bonds and Money Market Instrument.
" The second largest component was Other Investment, which accounted for
$561.61 million, or 30.80% this investment type is now dominated by Loans"
"As in each quarter over the past two years, FDI accounted for the smallest
share of imported capital. A total of $340.64 million, or 18.69% based on it's Equity."
"In the third quarter of 2016, Portfolio Investment was the largest component of imported capital and accounted for $920.32 million, or 50.51% based on it's Equity, Bonds and Money Market Instrument.
" The second largest component was Other Investment, which accounted for
$561.61 million, or 30.80% this investment type is now dominated by Loans"
"As in each quarter over the past two years, FDI accounted for the smallest
share of imported capital. A total of $340.64 million, or 18.69% based on it's Equity."
However, In terms of Capital Importation by Sector was stated in the report that "In the third quarter of 2016 the value of share capital imported was $646.28
million, which represents an increase of 85.72% relative to the previous
quarter.
The banking sector regained its position as the sector to import the largest value of capital, and imported $555.52 million, or 30.49% of the total.
million, which represents an increase of 85.72% relative to the previous
quarter.
The banking sector regained its position as the sector to import the largest value of capital, and imported $555.52 million, or 30.49% of the total.
Followed by Telecommunications, which is also usually one of the key sectors involved in capital importation. The value of capital imported by Telecommunications was $244.80million, or 13.34% of the total and also The Oil and Gas sector which maintained a high level of capital importation.
In terms of Capital Importation by Country of Origin of investment inflows it was stated in the report that " The country from which Nigeria imported by far the most capital was the United Kingdom, which accounted for $1,097.59 million, or 60.24% of the total.
It was also added that Since 2010, the UK has accounted for the highest value of capital importation.
It was also added that Since 2010, the UK has accounted for the highest value of capital importation.
Followed by the United States, which accounted for $426.98 million, or 23.43% of the total and the Netherlands who also accounted for $94.44 million, or another 5.18% of the total value.
These three countries together therefore accounted for roughly nine tenths of
total capital imported into Nigeria.
total capital imported into Nigeria.
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