Data from the Nigerian Bureau Statistics says the total capital imported into the country in 2017 increased from 5.1 billion dollars to 12.2 billion dollars.
“When we consider the full year data, total capital imported into Nigeria stood at US$12.2bn in 2017 compared with US$5.1bn recorded in 2016,” business site- Proshareng.com wrote.
In its recent figures for the fourth quarter of 2017, NBS says the gross value of capital imports to the country was US$5.38 bn. This is a 30% increase from the 3rd quarter.
The rise of foreign inflow into the country was driven largely by portfolio investments- funds from international stock market investors.
Portfolio investment constituted 65% of capital inflow in the quarter under view. Foreign flows into Nigerian stocks increased by 21% from q3 to q4. Since portfolio investment is concentrated in the uncertain market of shares trading, its impact is not wholly felt on the economy. Most significant, are Foreign Direct Investments. (FDI).
This nature of investments made up 7% of the country’s investment basket in Q4. However, FDI inflows rose by 222% q/q to US$378m. Some semblance of stability has returned to Nigeria’s investment environment, thanks to the Investor and Export foreign exchange window.
The government will need to give more assurances of its sanctity of contract and infrastructural growth, if FDI inflow is to increased and sustained.