• Tuesday, July 16, 2024
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BusinessDay

Six things we learnt from Nigeria’s 2020 foreign investment report

Capital-importation

On Friday, the National Bureau of Statistics (NBS) released its full year, 2020 capital importation. BusinessDay findings from the report showed that Africa’s biggest economy, capital importation also known as foreign investments, declined by 59.7 percent to $9.7 billion in 2020 from $23.9 billion in 2019.

Here are further findings from the report

Nigeria’s $9.7 billion capital importation is the lowest in four years

This latest figure is the lowest recorded since 2016. Capital importation into the country stood at $16.8 billion in 2018, $12.2 billion in 2017 and $5.1billion in 2016.

Portfolio Investment recorded the largest amount of capital importation by type

Portfolio Investment accounted for 52.6 percent ($5.1 billion) of total capital imported, followed by Other investment, which accounted for 36. 1 percent ($3.5 billion) and Foreign Direct Investment (FDI), which accounted for 11.3 percent ($1.0 billion).

Banking emerged the highest by sector

Banking dominated, reaching $3.6 billion of the total capital importation in 2020, followed by financing ($1.89billion) and Shares ($1.85billion)

United Kingdom emerged as the top source of capital investment

The United Kingdom emerged as the top source of capital investment in Nigeria with $3.7 billion. Netherlands ($890.6 million) and South Africa ($875.9 billion) recorded the second and third position.

Lagos emerged as the top destination of capital

By destination of investment, Lagos state was the highest recording $8.3billion, followed by Abuja ($1.2 billion) and Abia state ($56.1million)

Standard Chartered Bank Nigeria Limited tops the list of capital investment by bank

Standard Chartered Bank Nigeria Limited emerged as the top bank of capital investment in 2020 with ($2.5 billion). The two other top banks were Stanbic IBTC Bank Plc ($2.2billion) and Citibank Nigeria Limited ($1.5billion)