Foreign inflows fall by 32% -CBN report

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.

Foreign inflows fall by 32% -CBN report

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