The capital importation report for the third quarter of 2016 released by the National Bureau of Statistics (NBS) recorded an increase of 74.84 per cent in investment inflow from $1.04bn in the second quarter to $1.82bn.
NBS stated that when compared with the inflow in the relative third quarter of 2015, the capital imported into the country represents a decline of 33.7 per cent.
The three major categories of investment that make up the total investment inflow into the country are portfolio investment, foreign direct investment and other investment.
An analysis of the report revealed that during the third quarter, portfolio investment rose by 172.84 per cent from $337.3m in the second quarter to $920.32m.
In the same vein, the report stated that foreign direct investment rose by 84.8 per cent from $184.3m in the second quarter to $340.64m in the third quarter while other investment rose by 7.8 per cent from $520.6m to $561.6m.
It said, “In the third quarter of 2016, portfolio investment was the largest component of imported capital and accounted for $920.32 million.
“Although portfolio equity declined by 28.12 per cent relative to the previous quarter, this is outweighed by large increases in other types of portfolio investments.
“Bonds increased from zero in the second quarter, to $369m in the third, and money market instruments increased from $57.5m to $350.2m over the same period, an increase of 509.03 per cent.
“This is the first quarter since 2007 second quarter in which equity was not the largest part of portfolio investment.
“At $201.12m this type of portfolio investment remains considerably subdued relative to previous highs of $4.9bn in the first quarter of 2013, and $3.87bn in the second quarter of 2014.”
The report explained that the highest amount of investment inflow for the third quarter of this year was recorded in the month of August when $894m was brought into the country by investors.
This, according to the report, was the highest monthly amount brought into the country by investors since July 2015.
The report explained further that in the month of September this year, the country recorded a total investment inflow of $649.76m.
This, it noted, was still more than any monthly investment inflow recorded during the first and second quarter of this year.
The report reads in part, “The total value of capital imported into Nigeria in the third quarter of 2016 was estimated to be $1.82bn, which represents an increase of 74.84 per cent relative to the second quarter.”
Explaining the reason for the quarterly increase in investment inflow, the report stated that most of the increase in the value of capital importation came from debt financing.
For instance, it said that out of the total quarterly increase, 85 per cent was accounted for by increases in portfolio investment in bonds and money market instruments.