Lagos, Abuja and Ogun States have been identified as the top recipients of capital investment in January, according to the Central Bank of Nigeria’s (CBN) monthly economic report.
The report stated that Lagos States received $180 million representing 75.6 per cent of the total capital inflow into the economy; Abuja got $80 million representing 24.1 per cent and Ogun state received $6 million representing 0.2 per cent.
A total of $380 million new capital was imported into the economy in January 2021, compared with $550 million in December 2020.
The report read in part, “Estimated data revealed a reduction in capital importation during the review period, reflecting the tight global financial conditions and narrowing interest rate differentials, occasioned by low yields on domestic money market instruments.”
“In terms of capital importation by nature of investment, banking accounted for 39.6 per cent; shares, 31.5 per cent; production/manufacturing, 12.8 per cent; telecommunication, 6.1 per cent; financing, 6.0 per cent; and agriculture, 4.0 per cent. Other sectors accounted for the balance.
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“A breakdown of capital importation by originating country showed that the United Kingdom, The Netherlands, Republic of South Africa, United Arab Emirates, Singapore, Denmark and Hong Kong accounted for 46.8 per cent, 20.1 per cent, 7.9 per cent, 6.5 per cent, 4.2 per cent, 3.2 per cent and 3.1 per cent, respectively, of the total inflow.”
The apex bank said capital importation by type of investment showed that inflow of other investments accounted for the largest share at $290 million, and represented 75.5 per cent of the total, followed by Foreign Direct Investment (FDI) inflow of $60 million, which accounted for 16.4 per cent.
It stated that Foreign portfolio investment (FPI) inflow, at $10 million, constituted 8.1 per cent of the total and when compared with the $440 million, $90 million and $20 billion for Other Investment, FDI and FPI, respectively, in the previous period, it indicated a decline of 34.1 per cent, 33.3 per cent and 50.0 per cent, respectively.
The report stated that capital outflow decreased significantly by 83.6 per cent (month-on-month) to $110 million in January 2021, relative to $670 million in December 2020.
A disaggregation showed that outflow in the form of loans worth $90 million, accounted for 83.8 per cent, while capital
reversal worth $10 billion accounted for 12.7 per cent of the total.
It added that investors repatriated dividends and profits which accounted for the balance of 3.5 per cent.
