The value of Nigeria’s capital imports declined to a nine-year low in 2016, dropping to $5.12 billion from the $9.64 billion recorded in 2015.
The Capital Importation Report for the last quarter of 2016 released yesterday by the National Bureau of Statistics (NBS) in Abuja showed that the 46.86 per cent slump recorded between the values of 2015 and 2016 was the highest in the country since 2007.
The NBS blamed the drop on “the numerous economic challenges that afflicted Nigeria in 2016.”
The apex statistical body in Nigeria observed that “The weakening of the naira may have had an impact; a weaker naira means more can be purchased with each dollar, and therefore investment projects requiring naira payments cost less in dollar terms.”
The report estimated the total value of capital imported into the country in the fourth quarter of 2016 at $1.55 billion, which represents a decrease of 15.00 per cent relative to the third quarter, and a fall of 0.52 per cent relative to the fourth quarter of 2015.
The value of Nigeria’s Foreign Direct Investment (FDI) dropped by $402.6 million in 2016 to stand at $1.04 billion from $1.45 billion recorded in 2015.
Despite the decline recorded between 2015 and 2016, analysis of the report showed that FDI recorded continuous growth in 2016 from $174.46 million recorded in the first quarter to $344.63 million in the fourth quarter of the year.
Further analysis showed that FDI figure fluctuated in 2015, growing from $394.61l million in Q1 to $717.72 million in Q3 and later dropped to $123.15 million in Q4.
However, the NBS expressed optimism that investors took a longer-term view, and therefore Nigeria’s recession and currency problems may carry less weight in investment decisions.
Capital is either imported in the form of shares, or directly imported by different sectors of the economy.
Analysis showed that in the final quarter of 2016, the value of share capital imported was $228.24 million.
Banking was the sector to import the largest value of capital in the previous quarter, but following a quarterly fall of $394.22 million, or 70.96 per cent, became the third largest, and imported $161.30 million in the final quarter of 2016 while the Telecommunications sector recorded an increase of $309.45 million.
The country from which Nigeria imported by far the most capital was the United Kingdom, which accounted for $482.89 million, or 31.18 per cent of the total.
If you are happy to be contacted by a Daily Trust journalist please leave a telephone
number that we can contact you on. In some cases a selection of your comments will
be published, displaying your name as you provide it and location, unless you state
otherwise. Your contact details will never be published. When sending us pictures,
video or eyewitness accounts at no time should you endanger yourself or others,
take any unnecessary risks or infringe any laws. Please ensure you have read the
terms and conditions.