By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s investment inflows declined $11.107 billion from $20.750 billion in 2014 to N$9.643 billion recorded in the review period of 2015, the National Bureau of Statistics (NBS) said in its latest report on Tuesday.
The NBS said the level of Capital imported between 2012 and 2014 was markedly higher than in preceding years. “This may have been a result of external factors, such as the inclusion of Nigeria in the JPMorgan EM Bond index, and globally low interest rates triggering a search for higher yields from investors over this period.
According to the report, the drop in 2015 may be partly a result of these factors unwinding, as well as the tougher economic environment in Nigeria resulting from the effect the lower oil price has had on export earnings. “Furthermore, the widely anticipated decision to raise interest rates in the US may have played a part in the drop of Capital inflows in the final quarter,” the NBS added.
On the third quarter, the NBS said it also saw a large change in the composition of Capital imported. “In every preceding quarter since 2009, Portfolio Investment has been the largest component, however as a result of a large quarterly decline in the third quarter (53.73 percent) and large quarterly increases in Foreign Direct and Other Investment 239.93 percent and 275.36 percent respectively,” the report noted.
The NBS said in the third and fourth quarter, Capital inflows were respectively 58 percent and 65.40 percent lower than in the same quarters of 2014.
According to the report, the total value of Capital imported into Nigeria in the third quarter of 2015 was $2,748 billion from the preceding quarter. This was followed by a total of $1,556 billion in the fourth quarter, a decline of 43.34 percent from levels recorded in the previous quarter.
Part of the report read, “The total value of Capital imported into Nigeria in the third quarter of 2015 was $2,748.10 million, up 3.07 percent from the preceding quarter.
This was followed by a total of $1,556.95 million in the fourth quarter, a decline of 43.34 percent from levels recorded in the previous quarter. The total for 2015 was recorded at $9,643.01 million. This is represents a 53.53 percent fall on the previous year, when the total was $20,750.76 million.
Each consecutive quarter of 2015 saw a larger annual fall than the previous; in the third and fourth quarter, Capital inflows were respectively 58.00 percent and 65.40 percent lower than in the same quarters of 2014.”
Click here to download Nigerian Capital Importation Q3 and Q4 2015-NBS
