Economy: Capital inflow drops to $20.75bn - NBS
The National Bureau of Statistics (NBS) on Thursday released the capita importation report for the 2014 fiscal year.
It stated that the amount of capital brought into the country dropped by $576.61m or 2.66 per cent from $21.31bn (N4.21tn) in 2013 to $20.75bn (about N4.1tn) in 2014.
The bureau in the report, which was made available to our correspondent attributed the decline in the amount of investment attracted by the economy to low level of investors' confidence owing to the build-up to the 2015 elections.
Specifically, it said compared to the fourth quarter investment of N4.49bn, which the economy attracted, a sharp decline of $2.04bn or 31.22 per cent was recorded from the value of $6.54bn that was recorded in the third quarter.
It said, 'Capital worth a total of $4.49bn was imported to Nigeria in the fourth quarter of 2014, bucking the upward trend that had been observed throughout the preceding quarters of 2014. A sharp decline of $2.04bn or 31.22 per cent was recorded from the value of $6.54bn that was recorded in the preceding quarter, which represented the peak value for the year.
'Despite this, the closing quarter of the year 2014 was still greater than the $3.90bn of capital imported in the opening quarter, by $595.18m or 15.24 per cent. Total capital imported in the year 2014 summed to $20.75bn, lower by $576.61m or 2.66 per cent from the $21.31bn that was imported in 2013.
'The annual decline was primarily due to the reduction in the value of capital imported in the fourth quarter of 2014, which was expected, as investor confidence is low during the build up to a presidential election, which in Nigeria was scheduled to hold in February of 2015.'
The source of the greatest value of capital imported to Nigeria, according to the report, continues to be the United Kingdom, with $1.94bn imported in the fourth quarter of 2014, representing 43.21 per cent of the total.
It said marginal declines were also observed in the United States, which is Nigeria's second largest source of capital, declining by $54.62m or 4.84 per cent to $1.07bn in quarter four.
The report categorised the investments into three broad segments - portfolio investment, Foreign Direct Investment and others.
For portfolio investment, the report stated that this made up the largest portion of the total capital imported.
It said at a fourth quarter value of $2.0bn, portfolio investment declined by $3.12bn or 60.94 per cent from its quarter three value of $7.12bn.
It said the decline in portfolio investment was mainly driven by declines in the value of equity, which at $1.54bn in quarter four of 2014, had declined by $2.22bn or 59.10 per cent from the preceding quarter.
The NBS report said Foreign Direct Investments increased from a value of $544.50m in quarter three of 2014, by $224.35m or 41.20 per cent to reach $768.86m in quarter four.