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Capital importation fell by 32 percent in 2019 Q4 —NBS
THE National Bureau of Statistics (NBS) has revealed in its latest report that the total value of capital importation in Nigeria stood at $3.8 million in the fourth quarter of 2019, representing a decline of 32.42 per cent when compared to the third quarter.
However, compared to the 4th quarter of 2018 it showed a 77.67 per cent increase.
According to the NBS report, the total value of capital importation in 2019 stood at nearly $24 million, compared to $16.8 million in 2018, representing a growth of 42.69 per cent between the two periods.
NBS showed the breakdown according to each sector in Q4 2019.
Foreign Direct Investment (FDI) which comprised equity and other capital amounted to $934.34, while portfolio investment which comprised equity, bonds and money instrument amounted to $16,365.46.
Other investments which comprised trade credit, loans, currency deposits and other claim amounted to $6,690.25.
The largest amount of capital importation by type was received through Foreign Portfolio Investment (FPI), followed by Other Investment and FDI.
In economics, FPI is the entry of funds into a country where foreigners deposit money in a country’s bank or make purchases in the country’s stock and bond markets, sometimes for speculation.
While an FDI is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.
By sector, shares dominated with the highest amount of capital imported in Q4 2019.
The NBS report also showed that the United Kingdom (UK) emerged as the country of origin with the highest amount of capital imported while Lagos is the destination with the highest amount of capital importation.
By banks, Stanbic IBTC Bank Plc emerged as the bank with the highest amount of capital imported into Nigeria in Q4 and full-year 2019