Nigeria recorded 247 per cent increase in capital inflow in 2017 amounting $12.2Bn against $5.38Bn in 2016, according to release by the National Bureau of Statistics (NBS).
The NBS said Nigeria recorded its highest capital inflow of $5.32Bn in the fourth quarter making it the strongest in the year under review, evidence that confidence in the Nigerian economy is surging back with speed and could grow stronger as the roll up. This is as the Nigerian Stock Exchange recorded huge surge of over 117% or N2.5 trillion in the week, supporting the notion of renewed interest by foreign investors in the Nigerian economy.
The NBS report revealed thus: “The total capital imported in the fourth quarter of 2017 was $5,382.9 million; this was an annual growth of 247.5%, and quarterly growth of 29.9%. As at the end of 2017, total capital imported into Nigeria was $12,228.6 million, an increase of $7,104.4 million or 138.7% from the figure recorded in 2016.”
“The growth in Capital Importation in 2017 was mainly driven by an increase in Portfolio Investment, which went up by $5,516.2 million from the previous year to reach $7,329.1 million in 2017 and accounting for 60% of capital imported. During the reference quarter total capital imported when compared to the previous quarter increased by $1,237.8 million.”
In terms of origination, the NBS stated that Nigeria had the bulk of its foreign inflow from the United States, the United Kingdom, and Belgium.
For stocks, BusinessDay research indicates that at the centre of increased equity deals in 2017 was a 133 per cent jump in foreign transactions to N1.2 trillion in 2017 from a mere N518Bn in 2016.
Domestic transactions also contributed to improved deals, surging 110.6 per cent to N1.3 trillon from N634Bn in the period under review.