Nigeria’s capital importation falls by 60% in 2020,

By Marlikberry,

Nigeria’s total value of capital importation in 2020 stood at $9.7 billion, compared to $24 billion in 2019, representing a decline of 59.65 per cent between the two periods.

Also, the country’s capital importation decreased by 71.87 per cent in the fourth quarter of 2020 when compared to the Q4 of 2019, the National Bureau of Statistics, (NBS) has said in a new report.

The bureau said the total value of capital importation into Nigeria stood at $1,069.68 million in the fourth quarter of 2020.

This represents a decrease of 26.81 per cent compared to the third quarter of 2020, and 71.87 per cent decrease compared to the fourth quarter of 2019.

Types
The bureau said the largest amount of capital importation by type was received through other investment, which accounted for 73.22 per cent ($783.26m) of total capital importation.

This is followed by Foreign Direct Investment (FDI), which accounted for 23.49 percent ($251.27m) of total capital imported and Portfolio Investment, which accounted for 3.29 percent ($35.15 million) of total capital imported in the fourth quarter of 2020.

When divided by sector, capital importation by Shares dominated in that quarter, reaching $287.04 million.

The United Kingdom emerged as the top source of capital investment in Nigeria in Q4 2020 with $236.88m. This accounted for 22.14% of the total capital inflow in Q4 2020,” the report said.

By Destination of Investment, Lagos state emerged as the top destination of capital investment in Nigeria in Q4 2020 with $829.64m. This accounted for 77.56% of the total capital inflow in Q4 2020.