Nigeria's forex inflow hits $1.79bn in Q2 '17 NBS

95% increase over Q1

By Yinka Kolawole

THE National Bureau of Statistics (NBS) has estimated total value of capital imported into Nigeria in the second quarter of 2017 at $1.79 billion. Capital importation denotes inflow of foreign currency into the country in cash or goods by investors or lenders.

In a report released yesterday, NBS noted that foreign currency inflow in the second quarter was $884.1 million more than the figure recorded in Q1 2017, representing a growth of 95 percent. “This figure was $884.1 million more than the figure recorded in Q1 2017, a growth of 95.02 percent. Year-on-year, this was an increase of 43.6 percent from the $1,042.2 million recorded in Q2 of 2016,” it added.

The report further revealed that the growth in Q2‘17 was largely driven by portfolio investments. Capital importation can be divided into three main investment types: Foreign Direct Investment (FDI), Portfolio Investment and Other Investments with each comprising various sub-categories.

NBS further stated: “A month on month analysis of capital importation in the second quarter shows that the month of May recorded the highest of amount of capital importation ($616.5 million), followed by June with $612.6 million and May with $563.3 million. The main driver of the quarterly growth in capital importation in the second quarter was Portfolio Investments, which increased by 145.7 percent, followed by other Investments, which grew by 95.02 percent, and then FDI, which increased by 29.8 percent over the previous quarter.”

Portfolio Investment was the largest component of imported capital in the second quarter of 2017, and accounted for $770.5 million, or 43 percent of the total. This was closely followed by Other Investments, which accounted for $747.5 million or 41.7 percent and then FDI, which accounted for $274.4 million or 15.3 percent during the quarter. “A year on year comparison of the three investment types indicates that portfolio investments increased by 128.4 percent from the $337.3 million recorded in second quarter of 2016. Other investments also increased by 43.6 percent from the $520.6 million reported in the same quarter of 2016, while FDI grew by 48.9 percent, from $184.3 million,” the report added.

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