The total value of capital importation into Nigeria contracted by 59.65% to $9.68 billion in 2020 compared to $23.99 billion in 2019, the National Bureau of Statistics (NBS) has said.
This represented the lowest foreign capital inflows since 2017 when the country recorded $12.22 billion.
In 2014, total foreign capital injection stood at $20.75 billion: 2015 $9.64 billion: 2016 $5.12 billion: 2017 $12.22 billion: 2018 $16.81 billion: 2019 $23.99 billion and $9.68 billion in 2020.
According to the Nigerian Capital Importation – Q4 and Full Year 2020 report, which was released by the statistical agency, foreign capital importation further declined by -26.81% to $1.06 billion in the fourth quarter of 2020 compared to $1.46 billion in the preceding quarter and also -71.87% decrease compared to the $3.80 billion recorded Q4 2019.
According to the report, other investment accounted for 73.22% or $783.26 million of total capital importation in Q4 2019, representing the largest amount of inflows by type during the period under review.
Foreign Direct Investment (FDI) accounted for 23.49% or $251.27 million of total capital imported while portfolio investment accounted for 3.29% or $35.15 million of total capital imported in Q4.
Meanwhile, the United Kingdom emerged as the top source of capital investment in the country with $236.88 million or 22.14% of the total capital inflow in Q4.
This was followed by Singapore $181.11 million, United Arab Emirates (UAE) $131.34 million, the Netherlands $131.21 and the United States $114.13 billion.
By destination of investment, Lagos State emerged as the top destination of capital investment for Q4 2020 with $829.64 million, representing 77.56% of the total inflows.
The Federal Capital Territory (FCT) attracted $222.64 million in foreign capital inflows, Anambra $8.86 million, Adamawa $0.02 million, Always IBM $0.81 million, Kaduna $1.99 million, Kano $1.30 million, Niger $4.03 million, and Ogun $0.40 million.
Other states failed to record any capital inflow.
Also, Citibank Nigeria Limited, among other banks, emerged at the top of capital investment in Nigeria with $216.17 million, that is 20.21% of the total capital inflow for Q4 2020.
However, by sector, capital importation by shares dominated in Q4, representing $287.04 million of total capital importation.
The drop in foreign capital into the country is not unconnected with the adverse impact of the COVID-19 pandemic which forced restrictions and knockdowns in several parts of the world and which brought major economies on their knees.
The liquidity crisis in the country’s foreign exchange market had also been partly blamed for foreign investors’ apathy towards Nigeria.