Total capital imported into Nigeria in 2014 summed up to $20.75 billion as against $21.32 billion in 2013, representing a drop of 2.66 percent.
Analysts at Meristem Securities Limited, a dealing member of the Nigerian Stock Exchange (NSE), said on Monday that the fourth quarter numbers showed a significant quarter-on-quarter (QoQ) decline of 31.23 per cent in total capital imported into Nigeria, attributing the development to waning investors’ confidence due to falling crude oil prices coupled with election uncertainties as well as insurgency threats in the north-eastern region of the country.
The report noted that “the United Kingdom (UK) sustained its position as the highest capital importer into Nigeria with a 55 per cent share of total capital imported as at the full year of 2014, followed by United States (US), 20 per cent, and Belgium, five per cent while Mauritius, Netherland and Saudi Arabia contributed three per cent capital apiece.
Meristem also remarked that capital inflow into the Nigerian equities market from January to December of 2014 totalled $13.71 billion, declining by 16.23 per cent from 2013 figure. Foreign portfolio investment (FPI) accounted for $11.45 billion, representing 83.49 per cent while foreign direct investment was $2.26 billion or 16.51 per cent
Capital inflows into the Nigerian bonds and money market instruments from January to December stood at $2.44 billion and $1.03 billion respectively while other forms of investments attracted $3.57 billion during the period under review.
According to Meristem Securities, “We anticipate a continued decline in capital importation in the first half of 2015 due to the prevalence of economic and political uncertainties. However, expect a recovery in the second half of 2015 after the country’s general elections and probable resurgence of global oil prices.