Nigeria suffers 60% drop in 2020 foreign capital inflow

Foreign capital flow into Nigeria tumbled by almost 60 percent in 2020 to $9.68bn, its lowest level in four years, the National Bureau of Statistics said on Friday.

The NBS said in its latest capital importation report that the total value of capital importation into the country fell by 59.65 percent or $14.3bn last year from $23.99bn in 2019.

Foreign capital flow into the country stood at $16.81bn in 2018, $12.23bn in 2017 and $5.12bn in 2016, the NBS data showed.

The statistics office said the total value of capital importation in Q4 stood at $1.07bn, down by 26.81 percent and 71.87 percent compared to Q3 2020 and Q4 2019 respectively.

“The largest amount of capital importation by type was received through other investment, which accounted for 73.22 percent ($783.26m) of total capital importation, followed by Foreign Direct Investment, which accounted for 23.49 percent ($251.27m) of total capital imported and portfolio investment which accounted for 3.29 percent ($35.15m) of total capital imported in Q4 2020,” it said.

The NBS said the United Kingdom emerged as the top source of capital investment in Nigeria in Q4 with $236.88m, accounting for 22.14 percent of the total capital inflow.

It said, “By Destination of investment, Lagos State emerged as the top destination of capital investment in Nigeria in Q4 2020 with $829.64m. This accounted for 77.56 percent of the total capital inflow in Q4 2020.

“By bank, Citibank Nigeria Limited emerged at the top of capital investment in Nigeria in Q4 2020 with $216.17m. This accounted for 20.21 percent of the total capital inflow in Q4 2020.”