A report by NBS disclosed that the inflows represent $5.8 billion increase in the level of inflows recorded in fourth quarter of 2018 and a $2.15 billion increase when compared with the inflows of the sane period of last year.
The National Bureau of Statistics (NBS) yesterday declared that Foreign Direct Investments (FDIs) inflows to Nigeria in the first quarter of this year stood at $8.485 billion.
“The total value of capital importation into Nigeria stood at $8,485 billion in the first quarter of 2019. This represents an increase of 216.03 per cent compared to Q4 2018 and 34.61 per cent increase compared to the first quarter of 2018,” the report stated.
It also indicated that the largest amount of capital importation by type was received through Portfolio investment (Hot Money), which accounted for 84.21 per cent or $7,145billion of total capital importation.This was followed by other investments, which accounted for 12.91 per cent or $1,096 billion of total capital and FDIs, which accounted for 2.86 per cent or $243 million of total capital imported in 2019.
Hot money refers to stock market or other money market investments that could be pulled out at the shortest possible notice from a country.Director General of the Debt Management Office (DMO), Ms. Patience Oniha and a Professor of Capital Market, who is also the Abuja Branch Chairman of the Chartered Institute of Bankers of Nigeria (CIBN) have explained that the monthly over-subscriptions at the FGN Bonds signposts increased confidence in the Nigerian economy by foreign investors.
“Lagos State emerged the top destination of capital investments in Nigeria in the quarter under review with $4,773 million, accounting for 56.25 per cent of capital inflows. “Stanbic IBTC Bank Plc emerged the top of capital investment in Nigeria in Q1 2019 with $3,606 million, which accounted for 42.50 per cent of total capital inflow in the quarter,” it added.
The report added that capital importation by banking dominated Q1 2019 reaching $2.851 million of the total capital importation in the quarter.It also disclosed that the United Kingdom (UK) emerged the top source of capital investment in Nigeria in the quarter with $4.531 million, which accounted for 53.40 per cent of total capital inflows in Q1 2019.