Foreign capital inflow to Nigeria plummets in Q1 amid heightened uncertainty

By bne IntelliNews May 19, 2015

The total inflow of foreign capital to Nigeria plunged 31.6% y/y to $2.67bn in the first quarter, following a 3.9% y/y decline in the preceding quarter, reflecting high levels of uncertainty due to a postponed election and depressed oil price, the country’s National Bureau of Statistics (NBS) said. On a quarterly comparison basis, Q4’s capital importation shrank 40.6% after a 31.2% drop in Q4.

Portfolio investment accounted for the biggest part of the total foreign capital inflow in Q1 with a 73.5% share, sharply up from 44.5% in Q4. It fell 7.1% q/q and 35.2% y/y to $1.86bn.

Next, ‘other’ investments reached $416.3bn in Q1, down 76% q/q and 23.6% y/y. Their share from the total declined to 15.6% from 38.4% in Q4.

Foreign direct investment (FDI) shrank 48.7% q/q and 19.6% y/y to $394.6mn in Q1. Its share from the total fell to 14.8% from 17.1% in Q4.

With a relatively small 9.6% quarterly drop, the UK remained the biggest investor in Nigeria, contributing $1.76bn, or 65.9%, of the total foreign capital inflow in Q1 (43.2% in Q4). It was followed by the US, which provided $348.3mn (13% of the total), down 67.6% q/q.

Related Articles

Russia's Rosneft sets foot in Mediterranean with $1.125bn Eni deal

Russia's largest oil producer state-controlled Rosneft has acquired 30% in the largest natural gas field in the Mediterranean from Italian Eni, the company announced on October 9. Rosneft that ... more

PetroSA, Rosgeo sign $400mn oil and gas exploration agreement for South Africa

South Africa's national oil company PetroSA and Rosgeo, the geological exploration company of the Russian Federation, have signed an agreement on a $400mn oil and gas development project in South ... more

South Africa’s MTN to invest $350mn in Iranian broadband

South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more