Blog entry by Chiamaka Nnake

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by Chiamaka Nnake - Saturday, 14 September 2019, 11:58 PM
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The Nigeria Bureau of Statistics recently released the Q2 2019 Capital importation report, which showed a total of $5.8 billion imported into Nigeria in the quarter. This represents a 31% decline from Q1 2019 and an increase of 6% year on year (Q2 2018). The Foreign portfolio investment accounted for 74% ($4.2billion) of total capital received in the quarter, other investment was 22.41% ($1.3billion) and Foreign Direct Investment (FDI), which accounted for 3.83% ($222.89m) of total capital imported in Q2 2019. Money market investment accounted for 81% of the total flow for portfolio investment in Q2 2019 and half year 2019 is at 82% By sector, Capital importation into banking and financial services accounted for 61% in Q2 2019, reaching $3.5 billion. The United Kingdom and the United States emerged as the top sources of capital investment in Nigeria in Q2 2019, accounting for 54% and 20% of total capital inflow, respectively. Lagos and Abuja are the top destinations for capital inflow to Nigeria, accounting for 71% and 29% of fund received in Q2 2019 respectively. The significant reduction in the fund inflow is partly related to the unattractive financial market. The equity market has remained bearish so far in the year recording -11.62% year to date, alongside a dwindling yield environment, especially for the money market.