More money is flowing into Nigeria
The National Bureau of Statistics released a report of how much investment funds came into Nigeria in the first quarter of 2019.
What did it say?
Total Value of Capital inflow: ~$8.5 trillion. That’s 216.03% more than what came in the 4th quarter of 2018 and 34.61% more than the first quarter of 2018.
Type of Investment: Portfolio Investment (84.5%), Other investments (12.9%) Foreign Direct Investment (2.86%)
FYI: Portfolio investment refers to investments in a group (portfolio) of assets – financial instruments such as shares, debt, bonds. Portfolio investment is a passive form of investment and different from direct investment, which involves taking a sizable stake in a target company and possibly being involved with its day-to-day management.
Sector: Out of the ~$8.5 trillion that came into Nigeria, a few sectors such as Banking ($2.8 trillion), Shares ($2.4 trillion) Financing ($2.1 trillion) gulped most of it while a few other sectors such as Drilling, Brewing, Hotels didn’t receive any foreign investment.
Destination of Investment: 97% of the total investment came to only two states – Lagos (56%) and Abuja (41%).
Top 3 Countries of Origin: Almost 80% of the total investment came from three countries – the UK (53%), USA (17%) and South Africa (8%).
Why should I care?
A good understanding of how capital flows into Nigeria would help anyone seeking capital to be better positioned.
Dig Deeper: Nigerian Capital Importation(Q1 2019)