Summary
The total value of capital imported into Nigeria in the second quarter of 2017 was estimated to be $1,792.3 million. This figure was $884.1 million more than the figure recorded in q1 2017, a growth of 95.02percent. Year on year, this was an increase of 43.6percent from the $1,042.2 million recorded in q2 of 2016.


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 $612.6million 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 Foreign Direct Investment (FDI), which increased by 29.8 percent over the previous quarter.

Capital Importation by Type
Capital Importation can be divided into three main investment types: Foreign Direct Investment (FDI), Portfolio Investment and Other Investments, each comprising various sub-categories.

Portfolio Investment was the largest component of imported capital in the second quarter of 2017, and accounted for $770.5 million, or 43.0% of the total. This was closely followed by Other Investments, which accounted for $747.5 million, or 41.7%, and then FDI, which accounted for $274.4 or 15.3% during the quarter.

A year on year comparison of the three investment types indicate that Portfolio Investments increased by 128.4%, from the $337.3 million recorded in second quarter of 2016. Other Investments also increased by 43.6%, from the $520.6 million reported in the same quarter of 2016, while FDI grew by 48.9%, from $184.3 million.

Foreign Direct Investment (FDI)
The total amount of FDI recorded during the quarter was $274.4 million, this was an increase of 29.8% over the previous quarter and a 48.9% increase over the same period of 2016. Equity investments accounted for the majority of total FDI imported in the second quarter of 2017, accounting for 99.9 percent ($274.1 million) of total FDI and increasing by 30.5% over the last quarter. On the other hand, Other Capital under FDI accounted for the balance of 0.1percent ($300,000) of total FDI, falling by 76.6 over the previous quarter.

Portfolio Investments
The second quarter recorded an estimated $770.51million in portfolio investments. This figure was 145.7% higher than the amount reported in the first quarter of the year, and 128.4% higher than the amount reported in the same period of 2016. A look at the composition of portfolio investments show that Equities recorded the largest share, accounting for 79.7% ($614.05 million) of the total, this was followed by Money Market Instruments, which accounted for 12.8% ($98.6 million), while Bonds accounted for 7.5% ($57.9 million).

Other Investments
Other investments recorded an increase of 95.0% over the quarter and 43.6% over the same period of 2016. Loans continued to dominate Other Investments as in previous quarters, accounting for 100% of capital imported in this category during the second quarter. The other components of Other Investments did not report any figures for the second quarter of 2017, however this may be revised in the next quarter when more information becomes available.

Capital Importation by Sector
Capital is either imported in the form of shares, or directly imported by different sectors of the economy. In the second quarter of 2017, the value of share capital imported was $932.58 million, which represents an increase of 548.5% relative to the previous quarter, and an increase of 168.0% relative to the second quarter of 2016.

This was by far the sector to attract the largest amount of capital in the second quarter of the year. This was a significant increase relative to recent quarters, the highest amount since the third quarter of 2015, when it declined significantly from $1,736.48 million to $831.88 million in the fourth quarter of 2015.

Share capital investment, which is closely related to Equity investment (FDI and Portfolio) was largely responsible for huge increase in capital importation during the quarter. The proportion of Shares compared to total value of capital importation over the previous quarters.

The sector to attract the second largest value of capital imported during the reference quarter was the oil and gas sector, accounting for 10.6%, or ($190.39 million) of total imported capital. This was an increase of 88.4% over the previous quarter, but a 5.0% decline when compared to the same period of last year. The Servicing and Production/Manufacturing sectors also attracted significant levels of capital importation in the second quarter, accounting for shares of 8.1% ($145.56 million) and 7.9% ($141.42 million) respectively.

There were four sectors to record no capital importation in the second quarter of 2017 (Fishing, Transport, Tanning and Weaving).

Capital Importation by State
The state to import the most capital into Nigeria in the second quarter of 2017 was Lagos, as in all previous quarters. Lagos is the commercial and financial capital of Nigeria, and home to Nigeria’s Stock Exchange where shares are traded. As such, it accounts for most of the capital imported into the country.

In the second quarter of 2017 Lagos accounted for 97.07% ($1,739.79 million) of capital importation, which represents a slight increase in its share relative to the previous quarter, when it was 95.32%. Akwa Ibom as in the previous quarter recorded the second highest level of capital importation, accounting for 1.92% ($34.08 million) of the total share and an increase of 85.6% over the amount it recorded in the previous quarter. Abuja recorded the third highest amount, with a share of 0.93% ($16.64 million) of the total, followed by Oyo state with a share of 0.1% ($1.83 million).

Capital Importation by Country of Origin
The country from which Nigeria imported the most capital was the United Kingdom, which accounted for $696.7 million, or 38.87% of the total. This value represents a 130.3% increase relative to the previous quarter, and 107.9% increase over the same period of last year.

As well as the existence of an historical relationship between the UK and Nigeria, London (the capital of the UK) is also a key financial centre, which explains the high value of capital importation accounted for by the UK. Since 2010, the UK has accounted for the highest value of capital importation in all but two quarters (both in the second half of 2015).

The country to account for the second largest value of capital importation was the United States. The US accounted for $287.82 million in the second quarter of 2017, or 16.06%. The US has also been one of the most important investors in Nigeria, usually either the largest or second largest investor country.

It also shares a language with Nigeria, it has also been historically the largest economy in the world, and is active in foreign investment globally. The next two largest investors in the second quarter of 2017 were Belgium (accounting for 15.7%) and Singapore (8.67%).

Capital Importation by Bank
Capital is imported through financial institutions into the country. In the second quarter of 2017, the bank through which the highest share of capital was imported was Stanbic IBTC, which accounted for 32.91% or ($589.84 million) of the total share, up from the 9.12% share it recorded in the first quarter of the year.

This was followed by Citi Bank Nigeria, which accounted for 19.12% share or ($342.7 million) of capital importation, also up from a share of 5.12% in recorded in the first quarter of the year.

The financial institution to account the third largest capital import share was Standard Chartered Bank, which recorded a share of 18.7%, down from the 25.4% share it reported in the first quarter, however in absolute terms, it was $103.7 million more than the amount it reported in the first quarter of the year.

Altogether, these 3 banks (Stanbic IBTC, Citi Bank Nigeria and Standard Chartered Bank) accounted for 70.7% or $1,267.8 million of total capital importation during the quarter, while the other 22 banks accounted for the balance.

Click Here to Download Capital Importation Q2 2017 (PDF) Report

https://brandspurng.com/stanbic-ibtc-citi-bank-nigeria-standard-chartered-bank-accounted-for-70-7-of-total-capital-importation-in-q2-nbs/

Shouldn't it be the other way round?
just saying

Naso

froz:
Shouldn't it be the other way round?

just saying

Must it always be the other way round?

I wanna imported a new girlie. Which bank should I go for

Ok

I bank with two of those listed cool

froz:
Shouldn't it be the other way round?

just saying

It is not compulsory to comment.. especially if you do not know the subject matter.

Silence is always golden

Stanbic my bank

Check my signature to order your football jerseys and get FREE CUSTOMIZATION, YES you heard me right FREE CUSTOMIZATION.

Not our problem

What are the real Nigerian Banks doing? This is shameful

oh

angels09:
What are the real Nigerian Banks doing? This is shameful

It is not shameful, after all, they account for almost 30% of the total capital importation. Mind you, this is just the quarterly report of the Bureau of Statistics, there may be more unofficial capital inflow that cannot be captured. The citi bank is an American Bank, many big diplomatic missions & international organizations use it.

I noticed those online social media people are few here.

Must you pipo comment ?

Even when you don't know what the report is saying

Jtmanager:
Must you pipo comment ?

Even when you don't know what the report is saying

First page still. Not surprised at all...

not surprised...yet when the slightest incident occurs in South Africa, they start clamoring for sanctions against South African firms, not knowing Nigeria's economy would be the biggest loser.

lol.

SmartyPants:
not surprised...yet when the slightest incident occurs in South Africa, they start clamoring for sanctions against South African firms, not knowing Nigeria's economy would be the biggest loser.

lol.

None of them is a South African Bank! Standard chartered is English and has been in existence before Mandela was born!

I am not surprised standbic made the list, whether we like it or not south Africans are one of the major players in the portfolio market in the country and they mostly bamk with standbic and most of standbic funds are routed through UK

BedLam:
None of them is a South African Bank! Standard chartered is English and has been in existence before Mandela was born!

Such an odd comment.

First off you seem to imply that to you, The birth of Nelson Mandela is also the birth of South Africa... You okay?

Anyway, do enlighten yourself:

http://www.standardbank.com/pages/StandardBankGroup/web/History.html

SmartyPants:


Such an odd comment.

First off you seem to imply that to you, The birth of Nelson Mandela is also the birth of South Africa... You okay?

Anyway, do enlighten yourself:

http://www.standardbank.com/pages/StandardBankGroup/web/History.html

A subsidiary in South Africa doesnt mean it's a Suth African bank. Did you even read what you posted ? The parent company ( the owners of the subsidiary ? Is English. Now you should ask yourself if you are okay.

You too shallow now to read my last line. Did I tell you South Africa began with Mandela? Go and read!

BedLam:
A subsidiary in South Africa doesnt mean it's a Suth African bank. Did you even read what you posted ? The parent company ( the owners of the subsidiary ? Is English. Now you should ask yourself if you are okay.

You too shallow now to read my last line. Did I tell you South Africa began with Mandela? Go and read!

Stop spreading ignorance here. Standard Bank, Stanbic bank are South African Banks. Standard Bank is the biggest Bank in African continent. It is an African Bank totally.

Your claiming that it was the UK that started it, yes UK might have but over time it has become fully owned by the country of residence. There are companies like that around the world started by UK during colonial times, especially in British colonies. Like in Australia there were a lot of companies started by UK but today are today completely Australian Companies, like Rio Tinto, Bhp, then another example I know a very big conglomerate in Malaysia started by the British called Sime Darby, today it is a total Malaysian Company. Then in Nigeria Royal Niger Company started by the UK later named UAC when Nigeria took it over or Barclays Bank started by UK which today is First Bank.

BedLam:
A subsidiary in South Africa doesnt mean it's a Suth African bank. Did you even read what you posted ? The parent company ( the owners of the subsidiary ? Is English. Now you should ask yourself if you are okay.

You too shallow now to read my last line. Did I tell you South Africa began with Mandela? Go and read!

"In 1987 Standard Chartered sold its remaining 39% interest in Standard Bank leaving it as purely South African owned for the first time. The severing of ties saw Standard Bank going into competition with Standard Chartered Bank in Africa while it also established representative offices overseas. To better reflect the group’s structure as a unified banking and financial services organisation, the name Standard Bank Investment Corporation was changed to Standard Bank Group Limited in June 2002."

Like i said before, are you okay?

djon78:
Stop spreading ignorance here. Standard Bank, Stanbic bank are South African Banks. Standard Bank is the biggest Bank in African continent. It is an African Bank totally.

Your claiming that it was the UK that started it, yes UK might have but over time it has become fully owned by the country of residence. There are companies like that around the world started by UK during colonial times, especially in British colonies. Like in Australia there were a lot of companies started by UK but today are today completely Australian Companies, like Rio Tinto, Bhp, then another example I know a very big conglomerate in Malaysia started by the British called Sime Darby, today it is a total Malaysian Company. Then in Nigeria Royal Niger Company started by the UK later named UAC when Nigeria took it over or Barclays Bank started by UK which today is First Bank.

Oga, Standard Bank/Stanbic bank, is quite different from Standard Chartered Bank. Do your research!