Total capital flows into Nigeria rose by 138.6 per cent percent year-on-year to $12.2 billion in 2017 from the figure recorded in 2016. The Capital is imported through financial institutions into the country.
This was disclosed by Nigerian Bureau of Statistics (NBS) in its Q4 2017 and full year 2017 Capital Importation Report.
The data put the investment inflow into the country as at the end of the fourth quarter of 2017 at $5.382 billion; this was an annual growth of 247.5 per cent, and quarterly growth of 29.9 per cent.
As at the end of 2017, total capital imported into Nigeria was $12,228.6 million, an increase of $7,104 billion or 138.7 per cent from the figure recorded in 2016, according to the Bureau.
In the fourth quarter of 2017, the bank through which the highest share of capital was imported was Stanbic IBTC Bank plc, which accounted for 50.7 per cent ($2,730 billion) of the total share, up from the 40.2 per cent share recorded in the third quarter of 2017.
This was followed by Standard Chartered Bank, which accounted for 15.1 per cent share or ($811 million) of capital importation.
The top five banks through which capital was imported in the fourth quarter were Stanbic IBTC bank, Standard Chartered Bank, Zenith Bank, and Citibank Nigeria Limited, and Access bank plc, all accounting for 87 per cent of capital importation in the fourth quarter.
In the fourth quarter of 2017, banking became the second leading sector to attract the highest amount of capital inflow, attracting $543.4 million or 10.1 per cent of total capital, an increase of 5.8 per cent from the previous quarter.
Next to banking was production, which had 5.9 per cent to total capital investment. Capital Importation to servicing sector dropped from $586.97 million in the previous quarter to $216.45 million in the fourth quarter, while $99.4 million flowed to fishing sector.
Capital Importation to telecommunications, financing and construction sectors also increased strongly compared to the previous quarter.
Share capital investment, which is closely related to Equity investment (FDI and Portfolio), was largely responsible for huge increase in capital importation during the quarter.
The component of shares has been on the increase since the first quarter of 2017, and by the fourth quarter it accounted for 68.4 per cent of total capital importation.
In the fourth quarter of 2017, of the $5.382 billion capital imported, $3.680 billion was invested as shares, representing a growth of 1,512.5 per cent year on year.
The increase in Portfolio Investment was driven by a strong growth in Money Market Instruments, which recorded $2,178.8 million, the first time since Q3 2013. Money Market Instruments contributed 63 per cent to Portfolio investments.
Equity, which had been the main driver of portfolio investments in previous quarters, dropped by $942.9 million from $1.932 billion in Q3 2017 to $989.2 million in Q4 2017.
On the other hand, bonds recorded an increase of $194.1 million, from $115.4 million in Q3 to $309.5 million in Q4 of the same year.
Other investment accounted for 28.4 per cent of total capital importation in the fourth quarter of 2017. This category of capital importation grew 65.96 per cent year on year, and by 21.2 per cent when compared to the previous quarter.
The $1,526.9 million recorded by Other Investment was mainly in the form of Loans, which was $1,091 billion in the fourth quarter, followed by other Cclaims which recorded $425.7 million, and then trade credits which reported $10 million, having posted no inflows since fourth quarter of 2016.
