CEM REPORT, LAGOS
The total value of capital importation into Nigeria stood at $5,854.38m in the first quarter of 2020. This represents an increase of 53.97% compared to Q4 2019 and -31.19% decrease compared to the first quarter of 2019.
According to the report released on Tuesday by the Nigerian Bureau of Statistics, US$4.309bn came through Portfolio investment and accounted for 73.61% of total capital importation. This amount is 43.62% increase from US$1.88bn received in Q4 2019
Other Investment, which amounted to US$1.330bn accounted for 22.73% of total capital, while Foreign Direct Investment FDI, with US$214.25m accounted for 3.66% of total capital imported in Q1 2020. In Q1 2020. Other investment fell by 24.81% from US$1.66bn while FDI increased by 336.09% from the US$934.34m received in Q4 2019
The report shows that Investment from the United Kingdom stood at US$2.908bn representing 49.68% of the total capital inflow in Q1 2020. This makes the country a consistent top source of capital investment in Nigeria
Following Uk are South Africa and United Arab Emirate with US$692.63m and US$532.89m respectively. The lowest investment came from India with US$0.49m
The Banking Sector has continued to dominate capital importation to the country with the sector raking in US$2.99bn in the quarter under review. This amount represent 50.68% of the total capital importation in Q1 2020.
By Destination, Investment in Q1 2020 came to 7 states which are Abuja, Akwa-Ibom, Kaduna, Kano, Lagos, Niger and Ogun. Lagos state emerged as the top destination of capital investment in Nigeria in Q1 2019 with $5,135.49m. This accounted for 87.72% of the total capital inflow in Q1 2020. Trailing Lagos far behind is Abuja with US$706.81m
As consistently maintained, the report show that Standard Chartered Bank Nigeria Limited received the highest capital investment in Nigeria in Q1 2020 with $1,656.60m. This accounted for 28.30% of the total capital inflow in Q1 2020.
fDi Market Intelligence, a research unit of Financial Time had earlier this month published that $10.2billion Capital Investment representing 9% of the total FDI into Middle East and Africa in 2019 came into Nigeria.
The report stated that Greenfield Foreign Direct Investment into Nigeria increased with regards to number of FDI projects and capital investment by 35% and 28%, respectively in 2019.
With these performance, Nigeria occupy 4th position in the inbound investment preference in the Middle-East and Sub-Sahara Africa
Egypt top the list followed by UAE and Saudi Arabia