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Nigeria recorded $24.12b 2014 Q4 net inflow – CBN report

By on May 19, 2014

Data from the Central Bank of Nigeria (CBN), shows that at the end of the 2014 fourth quarter, the nation recorded $35.34 billion total foreign exchange inflows to the economy, a drop of 8.2 per cent, when compared with $38.49 billion recorded in the previous quarter.

The CBN in the latest edition of its **External Sector Development Report** for fourth quarter 2013, said inflows through official sources (CBN) dropped by 20.2 per cent from $11.86 billion to $9.47 billion. Drop in inflows through autonomous sources declined by a smaller 2.9 per cent margin to $25.88 billion, just as outflows in in the period decreased by 13.1 per cent to $11.22 billion as against US$12.91 billion.

According to the report produced by the apex bank’s Economic Policy Directorate, showed that “a lower net inflow of $24.12 billion was recorded in the 2013 fourth quarter, compared with $25.59 billion in the third 2013, indicating a decline of 5.7 per cent.”

The CBN also put foreign direct investment and portfolio inflows for the period at $4.94 billion, as aggregate foreign capital inflow in- creased by 24.3 per cent from $3.97 billion, “owing to an increase in both direct and portfolio investment inflows.”

Direct investment and portfolio investment inflows rose by 16.1 and 26.6 per cent from US$0.86 billion and US$3.11 billion in Q3 2013 to $1.00 billion and $3.94 billion, respectively.

Within the period, the report said portfolio investment inflow contributed the lion’s share, accounting for 79.7 per cent of total, while direct investment inflows was 20.3 per cent.

“The higher inflow of foreign capital in the 2013 fourth quarter was a welcome development, which should be sustained through macro-economic stability and enhanced investment environment including good corporate governance,” the report added

The stock of Nigeria’s external reserves at $42.85 billion at year end, according to the report, compared with $44.11 billion in the preceding quarter, indicating a depletion of US$1.26 billion.

“The observed depletion in external reserves was due largely to the sales of foreign exchange to authorised dealers, payments to public sector and debt service payments.”

 

 

 

[Daily Independent]