Manufacturing and Banking account for the bulk share of Non-share capital imports, the Central Bank of Nigeria has stated in its Economic Report for August 2021.
According to the report, new capital imports into Nigeria decreased by 29% to $0.44 billion in August, compared with the $0.62 billion recorded in July.
The CBN stated that the interest of investors was more channeled to production, banking and financing.
It said: “A further analysis of capital imported, based on the nature of business, showed that the bulk of the capital was channeled to non-share activities, with production/manufacturing accounting for the largest share of 36.5 per cent, followed by banking with 24.5 per cent. Similarly, trading accounted for 13.6 per cent; financing, 10.7 per cent; and telecommunications, 4.1 per cent. Investment in shares (FDI and portfolio equities) was 4.0 per cent, while other sectors accounted for the balance.”
The United Kingdom maintained its stand as the major source of capital inflow, followed by the United States of America. As expected, Lagos was the main recipient of the capital with about US$0.37 billion or 83.9 per cent of the total.
“By country of origin, the United Kingdom remained the major source of capital inflow, followed by the United States of America, United Arab Emirates, Republic of South Africa, Congo, Denmark, and British Virgin Island, with shares of 41.5 per cent, 20.6 per cent, 17.1 per cent, 7.7 per cent, 4.5 per cent, 1.7 per cent, and 1.4 per cent, respectively, of the total. In the domestic economy, the main recipients of the capital were Lagos state (US$0.37 billion or 83.9 per cent of the total) and the FCT (US$0.07 billion or 16.1 per cent of the total),” the CBN report stated.
