Portfolio investment accounts for 62.9% of total capital importation in Q2
Foreign investor’s interest in the Nigerian economy declined in the second quarter of 2021 as total capital importation into Nigeria declined to $875.62 million from $1.9 billion recorded in the first quarter of 2021.
According to the capital importation report (Q1 and Q2) released by the National Bureau of Statistics (NBS) on Wednesday, the decline represents a decrease of -54.06% compared to Q1 2021 and a -32.38% decrease compared to the second quarter of 2020.
The report showed that the largest amount of capital importation by type was received through portfolio investment, which accounted for 62.97% ($551.37m) of total capital importation, followed by other Investment, which accounted for 28.13% ($246.27m) of total capital imported and Foreign Direct Investment (FDI), which accounted for 8.90% ($77.97m) of total capital imported in Q2 2021.
The United Kingdom emerged as the top source of capital investment in Nigeria in Q2 2021 with $310.26m. This accounted for 35.43% of the total capital inflow in Q2 2021.
By Destination of Investment, Lagos state emerged as the top destination of capital investment in Nigeria in Q2 2021 with $780.06m as it accounted for 89.09% of the total capital inflow in Q2 2021.
By Bank, Stanbic IBTC Bank Plc emerged at the top of capital investment in Nigeria in Q2 2021 with $310.21m. This accounted for 35.43% of the total capital inflow in Q2 2021.
By sector, Capital importation by Banking dominated in Q2 2021 reaching $296.51m of the total capital importation in Q2 2021.