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Lagos tops destination for FDI in second quarter

By on September 9, 2015

Lagos State accounted for over 99 per cent of all capital imported into the country in the second quarter of the year, according to the investment data provided by the National Bureau of Statistics (NBS) monday.

Inflows to the state stood at $2.663 billion, representing 99.90 per cent of the total $2.666 billion recorded for the whole country in the period.

Capital importation to the state grew on a quarterly basis by more than the overall total at $17.78 million or 0.67 per cent in Q2.
However, year-on-year, inflows were down by $3.044 billion or 53.33 per cent relative to the overall decline in capital imported.
The statistical agency stated that every other state with positive capital importation in the previous quarter recorded a decline in the quarter under review.

It said the greatest absolute quarterly decline was observed in Akwa Ibom, which recorded $0.50 million in Q2, representing a $10.96 million or 95.68 per cent decline compared to $11.45 million in Q1. Year-on-year, inflows to the state declined by 24.99 per cent or $164.94 million.

The Federal Capital Territory (FCT), Abuja also saw a decline in capital imports in the period in review at $1.27 million, down by $0.22 million or 14.66 per cent from the preceding quarter and as much as $2.71 million or 68.12 per cent year-on-year.

According to the NBS, the banking sector overtook the financing segment in the business category as the second greatest value of capital imported, increasing by $246.02 million or 214.14 per cent compared from Q1 inflows.

It reached the greatest value recorded since Q2 2013 at $360.92 million or 13.54 per cent of the total, up from the 4.30 per cent it recorded in Q1. From Q2 2014, banking inflows were greater by $169.81 million or 88.86 per cent.

Financing, on the other hand, recorded the greatest absolute declines in inflows, dropping $716.95 million or 93.90 per cent quarter-on-quarter and reaching its lowest value in the series.

Its share of the total capital importation dropped from 28.58 per cent in Q1 2015 to only 1.75 per cent in Q2. Year-on-year, financing inflows declined by $676.60 million or 93.56 per cent, according to the NBS.

Capital imported for the telecommunications sector remained the third greatest source of inflows, representing 5.19 per cent of the total. Year-on-year, it was still greater by $76.74 million or 124.46 per cent.

But it declined by $198.47 million or 58.92 per cent from the preceding quarter. This was despite the steady decline from its Q4 2014 peak of $769.92 million.

The NBS further stated that the greatest increase in inflows came from electrical businesses which was greater by $72.52 million or 8,689.26 per cent in Q2, up from $0.83 million in Q1 to reach $73.39 million or 2.75 per cent of the total inflows. Year-on-year, the rise was marginally lower by $71.59 million or 3,994.55 per cent.