Nigeria loses $2.6b in capital inflow

Nigeria has lost about $2.66 billion capital inflow in three months, affirming the raging reversal occasioned by hike in interest rate in United States (U.S.) and political tension in the country as real.

The National Bureau of Statistics (NBS) said capital importation into Nigeria in the third quarter of 2018 stood at $2.86 billion against $5.51 billion figure of the preceding quarter.

The decrease, which represents 48.21 per cent, is abysmal compared to the 12.53 per cent decrease recorded in the second quarter and the 31.12 per cent dip of the corresponding period of 2017.

The largest amount of capital importation was received through portfolio investment category, which targets stocks and governments’ securities, accounting for 60.5 per cent ($1.72 billion) of the total.

It was followed by Other Investment category, which accounted for 21.07 per cent ($601.53 million) and trailed by Foreign Direct Investment (FDI), representing 18.58 per cent ($530.63 million) of total capital imported in third quarter.

By sector, capital importation as shares, which is closely related to equity investment (FDI and portfolio investment), dominated the third quarter of 2018, amassing $1.67 billion of the total capital imported in the period.

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