BY BAMIDELE FAMOOFO
Lagos State remains the most viable among the 36 states of the federation in the second quarter in terms of destination for capital inflow.
The ‘Centre Of Excellence’ accounted for about 67 percent of total capital inflow into the country according to the National Bureau of Statistics in the review period with about $1.05 billion.
This was followed by investment into Abuja valued at $453.95 million (29.57%).
Categorization of Capital Importation by the Bank shows that Citibank Nigeria Limited ranked highest in Q2 2022 with $450.94 million (29.37%).
This was followed by Standard Chartered Bank Nigeria Limited with $323.24 million (21.05%) and Stanbic IBTC Bank Plc with $163.92 (10.68%).
Portfolio investment which may be termed ‘cash and carry’ investment in the layman’s language is the major source of capital inflow into Nigeria as at second quarter in 2022.
Data from the NBS on capital importation in Q2 puts capital importation through portfolio investment into Africa’s largest economy at $ 757.32 million, representing 49.33 percent of total capital inflow. It was the largest amount of capital importation received in the review period.
The total value of capital importation into Nigeria in the second quarter of 2022 stood at about $1.54 billion from $875.62 million in the corresponding quarter of 2021, showing an increase of 75.34 percent.
When compared to the preceding quarter, capital importation decreased by 2.40 percent from about $1.57 billion.
Other investment was the second largest contributor after portfolio investment with 41.09 percent ($630.87 million) and Foreign Direct Investment accounted for 9.58 percent ($147.16 million) of total capital imported in Q2 2022.
Disaggregated by Sectors, capital importation into banking had the highest inflow of $646.36 million amounting to 42.10 percent of total capital imported in the second quarter of 2022.
This was followed by capital imported into the production sector, valued at $233.99 million (15.24%), and the financing sector with $197.31 million (12.85%). Capital Importation by Country of Origin reveals that the United Kingdom ranked top as the source of capital imported into Nigeria in the second quarter of 2022 with a value of $781.05 million, accounting for 50.87 percent. This was followed by Singapore and the Republic of South Africa valued at $138.58 million (9.03%) and $122.26 million (7.96%) respectively.
