By Bamidele Famoofo
Abuja, Nigeria’s administrative capital is witnessing a continuation in the drying up of investment with 68.12 percent drop in inflow in second quarter of 2015.
According to the Central Bank of Nigeria (CBN), the Federal Capital Territory (FCT), capital importing dropped by $2.71 million (N522million) or 68.12 percent from second half of 2014.
Inflow in second quarter dropped by $0.22 million or 14.66 percent to $1.27 million compared to the preceding quarter.
Meanwhile Lagos State (South-West Nigeria) was the destination of over 99 percent of all capital imported to the country in second quarter of 2015. The feat which the state has achieved every quarter makes it the primary driver of capital importation in Nigeria.
In second quarter of 2015, this ratio was even greater; with the $2,663.78 million (about 532.76billion) capital imported representing 99.90 percent of the total. Inflows to Lagos grew on a quarterly basis by more than the overall total, at $17.78 million (about N3.56billion) or 0.67 percent in Q2. Year on year, inflows were down by $3,043.76 million (about N608.75billion) or 53.33 percent, similar to the overall decline in capital imported.
Every other State with positive capital importation saw a decline in the quarter of review. The greatest absolute quarterly decline was observed in Akwa Ibom, of $10.96 million (about N2.19billion) or 95.68 percent in Q2, so that inflows were reduced to just $0.50 million in Q2, from $11.45 million (about N2.29billion) in Q1. Year on year, the State’s declines were less sharp, at $164.94 million (about N32.99billion) or 24.99 percent.
Quarter two saw a slight recovery in the value of capital imported for Shares, increasing by $596.59 million (about N119.32billion) or 46.58 percent from its Q1 value to reach $1,877.26 million (about N375.45billion). Year on year, this was still a decline of $1,518.96 million (about N303.79billion) or 44.73 percent, which can be attributed to the overall decline in capital inflows over the period.
Banking overtook Financing as the business drawing the second greatest value of capital imported, increasing by $246.02 million (about N49.20billion) or 214.14 percent from Q1 inflows to reach the greatest value recorded since Q2 2013, of $360.92 million (about N72.18 billion) or 13.54 percent of the total, up from the 4.30 percent it represented in Q1. From Q2 of 2014, inflows were greater by $169.81 million (about N33.96billion) or 88.86 percent.
Financing, on the other hand, saw the greatest absolute declines in inflows of all Business categories, down $716.95 million (about N143.39billion) or 93.90 percent quarter on quarter, reaching its lowest value in the series. Its share of the total dropped from 28.58 percent in Q1 of 2015 to just 1.75 percent in Q2. Year on year, Financing inflows declined by $676.60 million 9about N135.32billion) or 93.56 percent.
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