Investment inflows into the Nigerian economy more than doubled to $4.2 billion just in the third quarter of 2017 from the previous quarter level, and also grew 147.5 per cent on a year on year basis, the National Bureau of Statistics (NBS) said on Monday.
This investment inflow is the highest which the country, recovering from a recession recorded since the beginning of 2015 when capital hit over $4 billion in a quarter.
“The boom in capital importation in Q3 2017 was mainly driven by significant growth in both Portfolio Investment and Other Investment,” the NBS said in its latest capital importation report.
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Portfolio Investment was recorded at $2.767 billion in the third quarter of 2017, indicating the largest component of capital import and contributed 67 per cent of total inflows.
The NBS said portfolio component expanded faster than Foreign Direct Investment (FDI) and other investment with a 200.7 per cent year on year growth rate.
Foreign Domestic Investment recorded $117.6 million, falling by 65.5 per cent year on year while Other Investment increased by 124.55 per cent compared to the third quarter of 2016.
The NBS reported that although Other Investment in the third quarter of 2017 more than doubled from $516.2 million in the third quarter 2016 to $1.260 billion, it remained about 30 per cent of the total capital importation.
According to the NBS, “The total amount of FDI during the quarter was recorded at $117.6 million, which declined by 57.14% compared to the previous quarter and 65.48% compared to 2016 Q3 due to the fall in both Equity and Other Capital investment.
“This category of capital investment showed a surprising decrease in value when both Portfolio Investments and Other Investment grew strongly over the third quarter.
Investment inflows in the form of Equity recorded $117.5 million and remained the majority of total FDI in the third quarter of 2017 while Other Capital fell from 0.3 to 0.13 million dollars from the second to the third quarter.
Portfolio Investment in the third quarter more than tripled the figure of the second quarter of this year, hitting $2.767 billion. “This figure was 200.7% higher than the same quarter in 2016 which was recorded $920.32million,” the statistics office stressed.
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It added that the boom seen in portfolio investment was driven by the strong growth of equity and bonds as well as a dramatic investment increase in money market instruments.
Other Investment accounted for 30% of the total capital importation in the third quarter of 2017.
The NBS stated that this category of capital import equally grew substantially by 124.55 per cent year on year and by 68.58 per cent quarter on quarter, although not as fast as Portfolio Investment.
The $1.260 billion recorded in Other Investment was mainly in the form of Loans, which hit $956.7 million in the third quarter. Other Claims also increased notably to $302.9 million.
The NBS further stated in the report that the investment inflows came majorly from the United Kingdom, which accounted for $1.736 billion or 41.89 per cent of the total of capital inflow in the third quarter of 2017.
“This value represented a 149.26% increase in capital importation relative to the figure in the previous quarter and a 58.22% growth over the same period in last year,” the NBS stressed.
The country accounting for the second largest value of capital importation was the United States, which recorded $962.1 million or 23.21 per cent
The next two largest investors in the third quarter of 2017 were Tanzania (accounting for 7.61%) and Mauritius (5.53%).
Onyinye Nwachukwu, Abuja
