Insecurity: Foreign Investors Avoid 31 States as Investments into Nigeria Drop by Over N600bn in Q1
- Nigerian foreign investment has plummeted in the first three months of 2021, as the country continues to be plagued by insecurity.
- When compared to the previous quarter, the NBS says that almost N1.6 billion worth of investment was squeezed out of the economy
- It also found that 31 states have no investment records, with the majority of these states having security issues
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The total value of foreign investment or capital importation into Nigeria dropped on a quarter-on-quarter basis by 28.1 per cent to $1.6 billion in the first quarter of (Q1) of 2022.
The National Bureau of Statistics (NBS) disclosed this in its capital importation report, released on Thursday.
When the data is analyzed on a year-on-year basis, capital importation dropped by 17.5 per cent from $1.9 billion recorded in Q1 2021.
Source: AFP
The report stated:
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“The largest amount of capital importation by type was received through Portfolio Investment, which accounted for 60.9 per cent ($957.6 million). This was followed by Other Investment with 29. 3 per cent ($460.6 million) and Foreign Direct Investment accounted for 9.9 per cent ($154.9 million) of total capital imported in Q1 2022."
Breakdown
Vanguard reports that the report also highlighted that in terms of Sectors, capital importation into banking had the highest inflow of $818.8 million amounting to 52.1 per cent of total capital imported in the first quarter of 2022.
This was followed by capital imported into the production sector, valued at $223.7 million (14.2 per cent) and the financing sector with $199.37 million (12.7 per cent).
In terms of country of origin, the United Kingdom ranked top as the source of capital imported into Nigeria in Q1 2022 with a value of $1.021.2 million, accounting for 64.9 per cent.
This was followed by the Republic of South Africa and the United States of America valued at $117.5 million (7.5 per cent) and $82.1million (5.2 per cent) respectively.
Only Six states with investment in Q1, 2022
NBS also revealed that only six states announced investment in Q1 these are:
- Abuja- $446.81 million
- Akwa Ibom- $4.15 million
- Katsina- $0.70 million
- Lagos- $1.20billion
- Oyo- $2m
- Plateau- $0.04 million
Zenith, Gtbank lead list of Nigeria's most valuable banks
Meanwhile Legit.ng in an earlier report revealed that Zenith Bank is starting 2022 as the most valuable commercial bank in Nigeria as the total value of Nigerian banks closed at N194.5 billion.
In second-most valuable bank is Guaranty Trust Bank followed by Stanbic IBTC Holdings to complete the top three most valuable banks.
Also, the aggregate market cap of all the banks under review went up by N46.6 billion to stand at N3.84 trillion.
Source: Legit.ng
