Nigeria’s direct investment inflow has declined by 28.3 per cent to $314.44 million, when compared to the preceding quarter of 2018.
The Central Bank of Nigeria in its fourth quarter 2018 report, indicated a decline of 67.2 per cent when compared to the corresponding period of 2017. Portfolio Investments inflow to the economy also decreased significantly to $1,382.40 million in Q4 2018 from $1,790.83 million and $3,787.16 million in the preceding quarter, and the corresponding period of 2017, respectively
However, other investment liabilities increased to $1,421.26million when compared with a reversal of $3,070.76 million recorded in the preceding quarter.
Relatively, Nigeria’s provisional balance of payment, which was in deficit in the third quarter of 2018, recorded a surplus of $2.8million in the last quarter of 2018.
Balance of payment is a summary of all monetary transactions between a country and the rest of the world. These transactions are made by individuals, firms and government bodies.
The CBN stated, “The provisional balance of payments estimates for Q4 2018 showed a significant improvement in the BOP outcome as the overall balance of payments recorded a surplus of $2.8million compared to a huge deficit of $4.54billion and a surplus of $6.18billon recorded in the preceding quarter and corresponding period of 2017, respectively.”
The current account balance improved from a deficit of $1.54billion in Q3 2018 to a surplus of $1.1billion in Q4 2018.
The financial account balance indicated a net acquisition of financial assets of $2.32billion in the review period as against net incurrence of financial liabilities of $4.61billion recorded in the preceding period.
The current account indicated a positive outcome during the review period, recording a surplus of $1.10billion as against a deficit of $1.54billion and a surplus of $3.65billion in the previous quarter and the corresponding period of 2017, respectively.
This development was largely attributable to the decrease in imports and payments on income.
According to the CBN, direct investments inflow decreased by 28.3 per cent to $314.44million when compared with the preceding quarter of 2018.
It, however, indicated a decline of 67.2 per cent when compared to the corresponding period of 2017. Portfolio investments inflow to the economy decreased significantly to $1.38billion in Q4 2018 from $1.79billion and $3.78billion in the preceding quarter and the corresponding period of 2017, respectively.
However, other investment liabilities increased to $1.42billion when compared with a reversal of $3.07billion recorded in the preceding quarter.
The stock of external reserves as at end-December 2018 stood at $42.59billion, indicating a depletion of 0.03 per cent when compared with the level in the preceding
quarter.
However, when compared with the corresponding period of 2017, it indicated an accretion of 8.2 per cent. The level of external reserves could finance approximately 13.0 months of imports, compared with 10.3 and 15.6 months of imports cover recorded in the preceding quarter and the corresponding period of 2017, respectively.
