UK pushes Nigeria’s foreign investment to 16-month high

Investments from the United Kingdom (UK) have pushed Nigeria’s foreign investment to $1.82 billion – it’s highest level in 16 months.

According to the National Bureau of Statistics (NBS) capital importation report, the total value of capital imported into Nigeria in the third quarter of 2016 was estimated to be $1.822 billion, which represents an increase of 74.84 percent relative to the second quarter.

The highest level of capital imported was in August, when $894.00 million was imported, the highest level since July 2015.

The foreign investments came in from 34 different countries that were active in investing in Nigeria, two countries more than what was seen in the previous quarter, but less 42 countries seen in the third quarter of 2015.

“The country from which Nigeria imported by far the most capital was the United Kingdom, which accounted for $1,097.59 million, or 60.24% of the total,” NBS said.

“Since 2010, the UK has accounted for the highest value of capital importation in all but two quarters (both in the second half of 2015). The country to account for the second largest value was the United States, which accounted for $426.98 million, or 23.43% of the total.

“As in the case of the UK, the US retained its position as the second largest investor into Nigeria in most quarters since 2010.”

Foreign Direct Investment (FDI), portfolio investments and others recorded quarterly increases, of 84.84 percent, 172.84 percent and 7.80 percent respectively.

The relatively strong growth in portfolio investment meant it regained its position as the largest investment type, and it accounted for 50.51% in the third quarter, compared to 18.69% and 30.80% for Other Investment and FDI respectively.

Vice President Yemi Osinbajo, who spoke at the presidential policy dialogue organised by the Lagos Chambers of Commerce and Industry (LCCI), said in August, that FDI took a plunge of 56 percent of from $395 million in Q1 2015 to $175million by Q1 of 2016.

He said portfolio investments, which averaged $621 million in Q1 of 2015, had declined to $90.3 million by Q1 2016.

With the recent upsurge in FDI and portfolio investments, the Nigerian economy can be said to be recovering from the capital flight recorded in the first quarter of 2016.