Nigeria has recorded the lowest level of capital inflows on record with a drop of N $2 billion from $2.67 billion recorded at the second quarter of 2015, to $647.11 million recorded in the second quarter of 2016.
The figures released by the National Bureau of Statistics (NBS), recently, showed that the drop in capital inflows into the country is the “largest year on year decrease” on record.“This provisional figure would be the lowest level of capital imported into the economy on record, and would also represent the largest year on year decrease,” the NBS stated.
Nigeria recorded a 75.7 percent drop in the amount of capital imported into the country at the second quarter compared to the same period last year.
Analysis showed that the services and production and banking sectors attracted the chunk of the capital inflows at $130.98 million, $92.62 million and $90.24 million respectively.
A look at the report showed that the importation of capital declined for Foreign Direct Investment, portfolio investments and other investments, but portfolio investments recorded by far the largest decline.
Foreign Direct Investments (FDI) into the various sectors declined by 37 percent from $211.1 million at the second quarter of last year to $133 million same period this year.
The report showed that portfolio investments dipped by 88.8 percent from $2.18 billion imported at the second quarter of last year to $245.3 million same period this year.
“As in each quarter over the past two years, Foreign Direct Investment accounted for the smallest share of imported capital. For the first time since the series began, equity accounted for the entirety of this investment type, as no capital was imported in the form of other capital. This is the first quarter that the number has been that high on record,” the report said.