Capital Importation In Q3-19: In The Shadow Of Q1- 19

Capital Importation In Q3-19: In The Shadow Of Q1- 19

Must Read

Lagos State Government bans Okadas, Tricyles, including Opay, Gokada

…Restricts Their Operations On 50 Highways, Bridges Lagos State Government on Monday wielded the big stick against the menace of...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -
- Advertisement -

Recently, the National Bureau of Statistics (NBS) published Nigeria’s Capital Importation report for Q3-19. Accordingly, we observed that on a q/q basis, the total capital imported dipped for the second consecutive quarter, down 7.8% to $5.4bn in Q3-19, lagging $8.5bn and $5.8bn inflows recorded in Q1-19 and Q2-19 respectively. A deeper dive into the numbers showed FDI inflows declined 10.2% q/q to $0.2bn while FPI inflows which accounted for over 50.0% of total capital imported, fell sharply by 30.1% q/q to $3.0bn.

Meanwhile, the other investments category rose by 66.2% q/q to c. $2.2bn, thanks to a 99.2% rise in inflows from loans. Notably, the bulk of the FPI inflows remained dominated in money market instruments (85.0% of FPI inflows) while the much needed FDIs stayed underwhelming – contributing a paltry 3.7% to gross inflows. We note that the lack of critical infrastructures, such as electricity and a good road network, was the reason for the continued poor FDI performance. However, we attribute the decline in FPI inflows to the lack of frequent OMO sales in Q3-19 and Q2-19 respectively.

Read:  Inflation Drops to 13.34% in March 2018; 0.99% Lower Than February 2018 Rate
Read:  Daily Insight: Market Outlook for Q4-18: 2019 Politics and the Market

Capital Importation In Q3-19: In The Shadow Of Q1- 19

Looking ahead, with bold reforms necessary to create an enabling environment still at large, we expect to FDIs to continue to remain on the sidelines. On the other hand, if the trends observed so far is anything to go by, we do not see inflows to money market returning to its Q1-19 high.

United Capital Research

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Coronavirus: UAE Case A Warning For Global Tourism

The United Arab Emirates Ministry of Health has announced a diagnosis of a coronavirus case in a family from...

Nigerian Insurance In 2020: Mergers & Acquisitions

The National Insurance Commission (NAICOM) anticipates several M&A transactions in Nigeria in 2020. No lesser than six insurance companies have notified the regulator of...

Road accidents statistics worldwide: a 2019’s report on mortality rate per country

In terms of road safety, Africa is not the example to follow. According to WHO report, the continent registered a road-traffic mortality rate of...

DStv Streaming Service May Cost The Same As Netflix – Analyst

MultiChoice is expected to launch its standalone DStv Now streaming service by March 2020. The company currently allows subscribers to stream content through its DStv Now online...

More Articles Like This