Foreign Capital Inflow Up By 83%

Analysis of the Nigerian Capital Importation report for Q2’2022 has shown that foreign capital inflow into the production sector rose by 83 percent, Year-on-Year (Y-on-Y) to  $457.66 million in the first half year ended June 2022 (H1’22).

This is an increase from $245.22 million in the corresponding period in 2021.

Analysis showed that the inflow to the production sector recorded the highest growth H1’22 with the banking and the financing sectors trailing behind, while inflow to shares took a downward turn.

Breakdown showed that capital inflow into the banking sector rose 47 per cent to $1.46 billion in H1’22 from $1.00 billion in H1’21, while inflow into the financing sector rose by 26 percent to $396.67 million from $315.11 million in H1’21.

Chart showing Nigeria Top 10 Import Partners 2022 Q1

On the other hand, foreign capital inflow into equities declined massively by 66 percent to $301.89 million from $901.3 million in the corresponding period in 2021, reflecting apathy towards portfolio investment by foreign investors.

Furthermore, the share of inflow to the production sector rose to 14.7 per cent in H1’22 from 8.9 per cent in H1’21, representing a 6.1 percentage point increase.

On a Quarter-Quarter (QoQ) basis, the flow into the production sector rose by 4.6 per cent to $233.99 million in Q2’22 from $223.67 million in Q1’22.

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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