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The National Bureau of Statistics reported today that Nigeria’s total capital importation for the third quarter of 2016 declined by 33.7 per cent year-on-year to $1.82 billion compared with $2.748 billion posted in a similar period of last year. According to the NBS report, portfolio investment fell by 52.54 per cent in the same period.

On a quarter-on-quarter basis, however, total capital imports rose by 74.84 per cent. The NBS said the highest level of capital imported in Q3’16 was in August, when $894.00 million was imported, two months after the CBN floated the naira on the interbank foreign exchange market in June.

“Much of the quarterly increase in the value of capital importation came from debt financing,” the statistics agency said. “Of the total quarterly increase, 85 per cent was accounted for by increases in portfolio investment in bonds and money market instruments; the latter of which comprises short-term funding securities such as treasury bills and commercial bills from CBN.”

A breakdown of Nigeria’s capital imports in Q3 2016 shows that portfolio investment – equities, bonds, and money market instruments – accounted for $920.32 million or 50.51 per cent. Other investment – trade credits, loans, currency deposits, and other claims – accounted for $561.61 million or 30.80 per cent. Foreign direct investment (FDI) – equities and other capital – accounted for $340.64 million or 18.69 per cent.

The banking sector recorded the highest value of capital imported with $555.52 million or 30.49% of the total amount. Other top sectors were telecommunications, $244.8 million; oil and gas, $171.63 million; production/manufacturing, $68 million; financing, $37 million; and servicing, $37 million.

The major sources of Nigeria’s capital imports in Q3 2016 were the United Kingdom – $1.1 billion or 60.24 per cent of the total capital imports; the United States of America – $426.98 million or 23.43 per cent; and the Netherlands – $94.44 million or 5.18 per cent.