According to the Central Bank of Nigeria, non-share activity was responsible for capital imports. Manufacturing and Banking account for the majority of capital imports.
This information is based on the Central Bank of Nigeria’s Economic Report August 2021.
The report shows that new capital imports to Nigeria fell 29% to $0.44 Billion in August, as compared to July’s $0.62 billion.
What is the CBN saying
According to the CBN, investors were more interested in production, financing and banking. The 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 percent, followed by banking with 24.5 percent. Trading accounted for 13.6%, financing 10.7%, and telecommunications 4.1%. Investment in shares (FDI, portfolio equities and shares) was 4.0%. The balance was made up by other sectors.
The United Kingdom remained the main source of capital inflows, closely followed by the United States of America. The capital was received by Lagos, which was 83.9 percent of the total.
The United Kingdom was the main source of capital inflows by country of origin. This was followed by the United States of America and the United Arab Emirates. According to the CBN report, Nigeria state (US$0.37billion or 83.9 percent of the total) was the largest recipient of capital. The FCT (US$0.07billion or 16.1% of the total) was second.
However, the report stated that capital outflow was subdued over the review period due to lower dividends and repatriation. August saw capital outflow decline by 26.5 percent to US$0.44 trillion, as compared to US$0.60 billion the previous month.