Foreign capital inflow to Nigeria falls 3.9% y/y in Q4, down 2.7% in 2014

By bne IntelliNews March 16, 2015

The total inflow of foreign capital to Nigeria fell 3.9% y/y to $4.5bn in the fourth quarter of 2014, following a 48% y/y surge in the preceding quarter, data from the country’s National Bureau of Statistics (NBS) showed. On a quarterly comparison basis, Q4’s capital importation shrank 31.2% after a 12.7% growth in Q3.

For full 2014, total foreign investment reached $20.75bn, by 2.7% below the level for 2013.

Portfolio investment accounted for the biggest part of the total foreign capital inflow in Q4 with a 44.5% share, sharply down from 78.4% in Q3. It plunged 61% q/q and 41% y/y to $2bn.

Next, ‘other’ investments reached $1.73bn in Q4, up 100% q/q and 48% y/y. Their share from the total rose to 38.4% from 13.3% in Q3.

Foreign direct investment (FDI) rose 41% q/q and 531% y/y to $768.9mn in Q4. Its share from the total rose to 17.1% from 8.3% in Q3.

Despite a 33% quarterly drop, the UK remained the biggest investor in Nigeria, contributing $1.95bn, or 43.2%, of the total foreign capital inflow in Q4. It was followed by the US, which provided $1.07bn (23.9% of the total), down 4.8% q/q. Significant contributions came from Saudi Arabia ($435.5mn, 9.7% of the total) and Egypt ($282.1mn, 6.3% of the total).

Among other bigger foreign investors, Hong Kong ranked fifth with $133mn (3% of the total), followed by the Netherlands with $116.7mn (2.6%), Mauritius with $99.1mn (2.2%), and Belgium with $80mn (1.8%).

$mn Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
FDI - equity 541.3 400.8 194.6 113.9 490.4 461.6 544.2 767.8
FDI - other capital 20.1 0.1 0.6 7.9 0.3 11.4 0.3 1.0
Portfolio Investment – equity  4 930.6 3 934.2 3 532.5 2 719.3 2 260.4 3 875.4 3 770.4 1 542.1
Portfolio Investment – bonds 599.4 150.7 31.6 427.6 482.5 731.7 1 000.3 229.5
Portfolio Investment - money market instruments  220.5 402.6 171.3 248.8 126.3 310.0 357.1 231.5
Other Investments - trade credits  - - - - 14.7 1.4 5.1 0.9
Other Investments - loans  286.3 690.6 239.7 920.5 436.4 237.0 349.9 391.0
Other Investments - currency deposits  1.7 - - 2.5 - - - -
Other Investments - other claims  0.6 38.6 248.3 240.8 93.6 175.4 515.3 1 335.9
TOTAL 6 600.6 5 617.7 4 418.8 4 681.4 3 904.6 5 803.9 6 542.6 4 499.7
Source: NBS                

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