The Central Bank of Nigeria has disclosed that capital importation into the country fell by 32 per cent to $500m in October 2021, from $660m recorded in September.
The CBN disclosed these figures in its latest monthly economic report (October) recently released on the bank’s official website.
The decline is a negative turnaround from the increase recorded in September when capital inflow rose by $220m from $440m in August.
The report also shows that there is a corresponding decline in investment inflows from the United Kingdom, South Africa and other countries leading the pack in capital importation into Nigeria.
A breakdown of the inflows recorded in October shows that foreign portfolio investments dominated capital importation with a value of $330m.
The CBN said, “New capital importation decreased by 32.
0 per cent to US$0.
50bn in October 2021, from US$0.
66bn in September 2021.
“Disaggregation of capital importation by type of investment shows that foreign portfolio investment inflow (mainly money market instruments), at US$0.
33bn, decreased by 34.
0 per cent, relative to the US$0.
50bn in September 2021.
Despite the decline, portfolio inflow remained dominant in total foreign investment, accounting for 65.
0 per cent.
”
The report also noted that foreign direct investment accounted for only 6.
8 per cent of capital inflows in October at $30m.
Considering capital importation by nature of business, the central bank said financing led the chart representing 47.
4 per cent, banking stood at 13.
8 per cent, shares got 12.
9 per cent while trading was 8.
9 per cent.
Other sectors such as telecommunication and service contributed 7.
4 per cent and 3.
8 per cent, production/manufacturing accounted for 3.
6 per cent while agriculture contributed 2.
1 per cent.
The CBN added that, “Capital importation by country of origin indicates that the Republic of South Africa led the pack (46.
1 per cent), followed by the United Kingdom (16.
4 per cent) and Singapore (10.
0 per cent).
The Netherlands contributed 9.
5 per cent, the United States of America (9.
4 per cent), Guinea (2.
0 per cent), Mauritius (1.
8 per cent), United Arab Emirates (1.
0 per cent), Czech Republic (0.
9 per cent), and Denmark (0.
9 per cent).
Others accounted for the balance.
“Analysis of capital importation by destination (states), reveals that Lagos and Abuja were the main recipients with US$0.
44 billion (or 88.
3 per cent) and US$0.
06 billion (or 11.
7 per cent) of the total, respectively.
”
Punch
Foreign inflows fall by 32% -CBN report
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