The inflow of capital into Nigeria’s economy decreased by 24.6% YoY to $4.56 billion during the first 10 months of 2022, as compared to $6.05 billion in the same period of 2021.
According to a report from the Central Bank of Nigeria (CBN), capital outflows decreased by 32% YoY to $5.53 billion during the first 10 months of 2022, as compared to $7.3 billion in the same period of 2021. The data also revealed that capital inflow was at $610 million in January, but dropped steadily to $360 million in May, before rising to its highest point of $700 million in June. It then dropped again to $280 million in October. An analysis of capital outflows showed that it was at $290 million in January and rose gradually to $740 million in April, before declining to $490 million in May.
According to the October 2022 Economic report from the Central Bank of Nigeria (CBN), foreign capital imported into the economy increased by 4.5% to $0.28 billion, from $0.27 billion in September 2022. The report also states that the breakdown of capital inflow by type of investment shows that foreign direct investment inflow, constituting 6.3% of the total, decreased by 56.3% to $0.02 billion. In contrast, the inflow of foreign portfolio investment, representing 40.7% of the total, grew by 75.6% to $0.11 billion, with investment in fixed-income securities being the main contributor. Other investment capital (mostly loans), which accounted for 53.0% of the total, decreased by 2.6% to $0.15 billion. In July, outflows rose to $710 million and dropped to $280 million in October. Lower repatriation of dividends and outflow of loans moderated capital outflow, which decreased by 38.0% to $0.28 billion, compared with $0.45 billion in September 2022. A breakdown of the report shows that the repatriation of dividends decreased by 61.9% to $0.05 billion, from $0.14 billion in September 2022. The outflow of loans also declined to $0.12 billion, as compared to $0.21 billion in September 2022.
“On the other hand, capital reversal outflows increased by 5.7% to $0.11 billion, as compared to $0.10 billion in September 2022.”
Source: Vanguard News