The Central Bank of Nigeria has stated that non-share activity attracted capital imports, with Manufacturing and Banking accounting for the bulk share of capital imports.
This is according to the Central bank of Nigeria’s Economic Report for August 2021.
According to the report, new capital imports into Nigeria decreased by 29% to $0.44 billion in August, compared with the $0.62 billion recorded in July.
The CBN stated that the interest of investors was more channelled to production, banking and financing. The said: “A further analysis of capital imported, based on the nature of business, showed that the bulk of the capital was channelled to non-share activities, with production/manufacturing accounting for the largest share of 36.5 per cent, followed by banking with 24.5 per cent. Similarly, trading accounted for 13.6 per cent; financing, 10.7 per cent; and telecommunications, 4.1 per cent. Investment in shares (FDI and portfolio equities) was 4.0 per cent, while other sectors accounted for the balance.”
NewsBeatng reports that the United Kingdom maintained its stand as the major source of capital inflow, followed by the United States of America. As expected, Lagos was the main recipient of the capital with about US$0.37 billion or 83.9 per cent of the total
“By country of origin, the United Kingdom remained the major source of capital inflow, followed by the United States of America, United Arab Emirates, Republic of South Africa, Congo, Denmark, and British Virgin Island, with shares of 41.5 per cent, 20.6 per cent, 17.1 per cent, 7.7 per cent, 4.5 per cent, 1.7 per cent, and 1.4 per cent, respectively, of the total. In the domestic economy, the main recipients of the capital were Lagos state (US$0.37 billion or 83.9 per cent of the total) and the FCT (US$0.07 billion or 16.1 per cent of the total),” the CBN report stated.
The report however said that Capital outflow remained subdued during the review period, due to lower repatriation of capital and dividends. Capital outflow declined by 26.5 per cent to US$0.44 billion in August, compared with US$0.60 billion in the earlier month.