The National Bureau of Statistics (NBS) said that the total value of capital importation into the country stood at 5.8 billion dollars in the first quarter (Q1) of 2020.
The NBS made this known in its latest report on “Capital Importation” released on Tuesday.
It explained that the amount represented an increase of 53.97 per cent compared to Q4 2019 and -31.19 decrease compared to the first quarter of 2019.
Under Nigerian law, every foreigner investing in a local business in Nigeria is required to procure a Certificate of Capital Importation (“CCI”) on the inflow of foreign currency or raw materials or equipment imported into Nigeria.
A Certificate of Capital Importation (“CCI”) is a certificate issued by a Nigerian bank confirming an inflow of foreign capital either in the form of cash (loan or equity) or goods. A CCI is usually issued in the name of the applicant company within 24- 48 hours of the inflow of the capital into Nigeria.
The primary purpose of the CCI is to guarantee access to the official foreign exchange market for repatriations of capital and returns on investment, which include dividends, interest, and capital on divestments. The requesting company must present a copy of the CCI to the Nigerian bank to process a remittance.
Essentially, a capital importation can be done through an authorized dealer, which is usually a commercial bank or via a debt-equity scheme of the federal government.
The National Bureau of Statistics noted that the largest amount of capital importation by type was received through portfolio investment, which accounted for 73.61 per cent which was 4.3 billion dollars of total capital importation.
According to the NBS, this is followed by other investments which accounted for 22.73 per cent of 1.3 billion dollars of total capital and the Foreign Direct Investments (FDIs) which accounted for 3.66 per cent of 214.25 million dollars of capital imported in Q1 2020.
It, however, disclosed that by sector, capital importation by banking dominated Q1 2020, reaching 2.9 billion dollars of the total capital Importation in Q1.
“The United Kingdom emerged as the top source of capital investments in Nigeria in Q1, 2020, with 2.9 billion dollars which accounted for 49.68 per cent of the total capital inflow in Q1 2020.
“By destination of investment, Lagos state emerged at the top destination of capital investment in the country in Q1 2019 with 5.1 billion dollars.
“This also accounted for 87.72 per cent of the total capital inflow in Q1 2020.
“By bank, Standard Chartered Bank of Nigeria emerged at the top of capital Investments in the country in Q1 2020 with 1.6 billion dollars and this accounted for 28.3 per cent of the total capital inflow in Q1, 2020” the bureau said.
