•Lagos is top destination with $829.64m of capital investment in Q4 2020

James Emejo in Abuja

The total value of capital importation into the country contracted by 59.65 per cent to $9.68 billion in 2020 compared to $23.99 billion in 2019, the National Bureau of Statistics (NBS) stated yesterday.

This represented the lowest foreign capital inflows since 2017 when the country recorded $12.22 billion.
In 2014, total foreign capital injection stood at $20.75 billion: 2015 $9.64 billion: 2016 $5.12 billion: 2017 $12.22 billion: 2018 $16.81 billion: 2019 $23.99 billion and $9.68 billion in 2020.

According to the Nigerian Capital Importation – Q4 and Full Year 2020 report, which was released by the statistical agency, foreign capital importation further declined by -26.81 per cent to $1.06 billion in the fourth quarter of 2020 compared to $1.46 billion in the preceding quarter and also -71.87 per cent decrease compared to the $3.80 billion recorded Q4 2019.

According to the report, other investment accounted for 73.22 per cent or $783.26 million of total capital importation in Q4 2019, representing the largest amount of inflows by type during the period under review.

Foreign Direct Investment (FDI) accounted for 23.49 per cent or $251.27 million of total capital imported while portfolio investment accounted for 3.29 per cent or $35.15 million of total capital imported in Q4.
The United Kingdom emerged as the top source of capital investment in the country with $236.88 million or 22.14 per cent of the total capital inflow in Q4.

This was followed by Singapore $181.11 million, United Arab Emirates (UAE) $131.34 million, the Netherlands $131.21 and the United States $114.13 billion.

By destination of investment, Lagos State emerged as the top destination of capital investment for Q4 2020 with $829.64 million, representing 77.56 per cent of the total inflows.

The Federal Capital Territory (FCT) attracted $222.64 million in foreign capital inflows, Anambra $8.86 million, Adamawa $0.02 million, Always IBM $0.81 million (Akwa Ibom?), Kaduna $1.99 million, Kano $1.30 million, Niger $4.03 million, and Ogun $0.40 million.

Other states failed to record any capital inflow.
Meanwhile, going by the bank, Citibank Nigeria Limited emerged at the top of capital investment in Nigeria with $216.17 million or 20.21 per cent of the total capital inflow for Q4 2020.
However, by sector, capital importation by shares dominated in Q4, representing $287.04 million of total capital
importation.

Essentially, the drop in foreign capital into the country is not unconnected with the adverse impact of the COVID-19 pandemic which forced restrictions and knockdowns in several parts of the world and which brought major economies on their knees.
The liquidity crisis in the country’s foreign exchange market had also been partly blamed for foreign investors’ apathy towards Nigeria.

Source

By destination of investment, Lagos State emerged as the top destination of capital investment for Q4 2020 with $829.64 million, representing 77.56 per cent of the total inflows.

The Federal Capital Territory (FCT) attracted $222.64 million in foreign capital inflows, Anambra $8.86 million, Adamawa $0.02 million, Always IBM $0.81 million (Akwa Ibom?), Kaduna $1.99 million, Kano $1.30 million, Niger $4.03 million, and Ogun $0.40 million.

Other states failed to record any capital inflow.

Isn't it AMAZING that majority of Nigerian states recorded ZERO in-flow of foreign capital?

I recon that a lot of the money recorded by Lagos belongs to states outside of Lagos, BUT if a state did not record any money, does that mean that it has been abandoned by her citizens, for Lagos?

Anambra (I suspect) is really the only state that can survive purely on its own in Nigeria, just on the sweat and hustle of her citizens, not on oil or mineral money.

Or it may validate the other often unspoken fact that Anambra only comes second to Lagos in terms of real economic viability. Abuja is PUBLIC money.