Capital importation into the country declined by 77.8 percent in the second quarter of 2020, a new report by the National Bureau of Statistics (NBS) has shown.
The total capital imported into the country in the second quarter stood at $1.29 billion, down from $5.85 billion in the first quarter.
This figure represents the lowest recorded since the first quarter of 2017 when the total capital imported stood at $908 million.
Only six states out of 36 states and the federal capital territory (FCT), received capital investments in Q2 2020.
These states are Lagos ($1.13 billion), FCT ($145.30 million), Ogun ($11 million), Niger ($6.86 million), Anambra ($1.16 million) and Kano ($0.13 million).
Lagos state accounted for 87.30 percent of the total capital inflow in Q2 2020.
“The largest amount of capital importation by type was received through other investment, which accounted for 58.77 percent ($761.03 million) of total capital imported, followed by portfolio investment, which accounted for 29.76 percent ($385.32 million) and foreign direct investment (FDI), which accounted for 11.47 percent ($148.59 million) of total capital imported in Q2 2020,” the report read.
“By sector, capital importation by shares dominated in Q2 2020 reaching $464.57 million of the total capital importation in Q2 2020.”
The highest sectors that received capital investment were shares ($464.57 million), financing ($309.48 million) and banking ($140.19 million), while fishing ($0.10 million); IT services ($0.34 million); and marketing ($1 million) sectors received the lowest capital investment.
By banks, Standard Chartered Bank Nigeria emerged the top of capital investment with $425.21 million, followed by Stanbic IBTC Bank ($325.30 million), and Citibank ($221.94 million).
Meanwhile, Ecobank ($0.50 million); Sterling Bank ($0.55 million); and Nova Merchant Bank ($1.16 million) were the least banks with capital inflows.
Overall, Standard Chartered accounted for 32.84 percent of the total capital inflow in Q2 2020.
The top three highest capital importation by country into Nigeria were United Kingdom ($428.83 million), which accounted for 33.12 percent of the total capital inflow in Q2 2020; South Africa ($149.29 million); and United Arab Emirates ($145.15 million).
The Philippines was the first on the least capital investment in Nigeria with $0.01 million, followed by Pakistan ($0.02 million) and Ireland ($0.03 million).