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In contrast, when compared to the same quarter last year, capital importation in Nigeria saw a significant increase of 152.8%, rising from $1.03 billion to the current amount.
Analyzing the types of capital imports, Portfolio Investment was the largest contributor, totaling $1.40 billion, which accounts for 53.93% of the overall capital importation. This was followed by Other Investment, which amounted to $1.169 billion, representing 44.92%.
Focusing on the category of Other Investments, the majority of foreign capital inflow was attributed to loans and other claims. Specifically, loans constituted $1.15 billion, making up 98.6% of the foreign capital imports in this category. In contrast, other claims received a mere $16 million during the quarter.
Portfolio Investments
In the realm of portfolio investments, capital inflows into equities accounted for 10.67% of the total portfolio investment, amounting to $149.93 million. During the second quarter of 2024, foreign capital inflows into money market instruments reached $1.07 billion, representing 76.6% of the overall foreign portfolio investment.
Additionally, foreign capital directed towards bonds constituted 12.6% of the foreign portfolio investment during this period, totaling $177.79 million. However, there was a noticeable decline in capital inflows into both bonds and money market instruments compared to the previous quarter.
Specifically, foreign capital inflow into bonds decreased by 57.75%, while that into money market instruments fell by 32.92% when juxtaposed with the first quarter of 2024.
Foreign Direct Investments
Foreign Direct Investment (FDI) represented the smallest segment of capital imports, contributing $29.83 million, or 1.15%, in Q2 2024. The performance of FDIs has been lackluster in recent quarters, largely due to an increase in the Monetary Policy Rate (MPR), which has diverted funds from the real sector of the economy into money market instruments.
Capital Importation by Sectors and Origin
The report indicates that the banking sector experienced the highest capital inflow in Q2 2024, totaling $1.12 billion, which accounted for 43.15% of total capital importation. This trend aligns with previous quarters. Following the banking sector, the Production/Manufacturing sector attracted $624.71 million (23.99%), while the Trading sector received $569.22 million (21.86%).
The majority of capital imports originated from the United Kingdom, contributing $1,120.15 million (43.01%), followed by the Netherlands with $577.82 million (22.19%) and the Republic of South Africa with $255.98 million (9.83%).