Total capital imported in the year of 2014 summed to $20,750.76 million, lower by $576.61 million or 2.66% from the $21,318.38 million that was imported in 2013. The annual decline was primarily due to the reduction in the value of capital imported in the fourth quarter of 2014, which was expected, as investor confidence is low during the build up to a Presidential election, which in Nigeria was scheduled to hold in February of 2015.

According to figures from the National Bureau of Statistics (NBS), capital worth $4,499.74 million was imported to Nigeria in the fourth quarter of 2014, bucking the upward trend that had been observed throughout the preceding quarters of 2014. A sharp decline of $2,042.84 million or 31.22% was recorded from the value of $6,542.58 million that was recorded in the preceding quarter, which represented the peak value for the year. Despite this, the closing quarter of the year 2014 was still greater than the $3,904.55 million of capital imported in the opening quarter, by $595.18 million or 15.24%.

Capital Importation by Investment Type

NBS divided capital importation into three main investment types: Foreign Direct Investment (FDI), Portfolio Investment and Other Investments, each comprising various subsectors. Despite still making up the largest portion of total capital imported, Portfolio Investment, at a value of $2,003.10 million declined by $3,124.65 million or 60.94% from its quarter three value of $7,127.75 million. Its subsequent share of total capital imported therefore declined from 78.38% in quarter three of 2014, to just 44.52% in quarter four. Year on year, this represented a decline of a lesser $1,392.66 million or 41.01%, from the quarter four 2013 total of $3,395.76 million, which was 72.54% of total capital imported.

The decline in portfolio investment was mainly driven by declines in the value of equity, which at $1,542.08 million in quarter four of 2014, had declined by $2,228.30 million or 59.10% from the preceding quarter and by $1,177.10 million or 43.29% year on year.

However, Portfolio investment was the only of the three broad categories to exhibit a decline. FDI increased from a value of $544.50 million in quarter three of 2014, by $224.35 million or 41.20% to reach $768.86 million in quarter four. This continued the observed steady rise in FDI capital imported throughout 2014, representing year on year growth of $647.04 million or 531.14%.

Other Investments also saw a sharp rise in the value of capital imported; from the $865.24 million recorded in Q3 of 2014, it increased by $861.66 million or 99.59% to its quarter four value of $1,726.91 million. Year on year, this was an increase of $563.10 million or 48.38%. The main driver of this growth was a rise in the subcategory of Other Claims, which increased by $820.59 million or 159.24%, from $515.31 million in quarter three of 2014 to $1,335.91 million in quarter four.

Within the FDI category, the increase was driven by equity, under which $767.83 million was recorded in the fourth quarter, up by $223.62 million or 41.09% from the $544.21 million recorded in the quarter preceding, and growing by $653.89 million or 573.87% year on year.

Capital Importation by Business Type

Shares continue to hold the largest share of capital imported by business type, with inflows of $1,934.32 million in Q4 of 2014, representing 42.99% of the total. Nonetheless, this was a sharp decline of $2,589.54 million or 57.24% from the preceding quarter, in which it represented 69.14% of the total. Year on year, the decline was still large, at $1,112.35 million or 36.51%, causing a subsequent decline in its share of the total of 22.09% points, from the 65.08% it represented in Q4 of 2013.

The decline in the value of capital imported for shares was partially compensated by the influx in capital imported for the Telecommunications business. From the quarter three value of $27.07 million, in which it represented just 0.41% of total capital imported, it increased sharply by $742.85 million or 2,744.53%. Year on year, growth was $414.44 million or 116.59%. Representing both the largest absolute and the largest percentage increase from the preceding quarter, the $769.92 million imported represented 17.11% of the total for the quarter.

Despite exhibiting a decline in the value of capital imported in the fourth quarter of 2014, at $566.06 million or 12.58% of the total, the third largest contributor to capital importation was financing. Capital imported for Financing declined by $507.77 million or 47.29% from the previous quarter; its share of the total declining by 3.83% points from its Q3 value of 16.41%. From the $858.12 million recorded in quarter four of 2013, this was a decline of $292.06 million or 34.04%. Nonetheless, from the opening low of $345.28 million recorded in Q1 of 2014, the closing value of capital imported for Financing for the year was still $220.78 million or 63.94% higher, continuing the volatile trend observed over the preceding year.

As fourth largest, Manufacturing/Production capital stood at a value of $366.92 million, maintaining its higher level of inflows realized in the latter half of the year. Although it increased by a marginal $1.82 million or 0.50% from the preceding quarter, its share of the total increased from 5.58% in quarter three of 2014, to 8.15% in quarter four. From the value recorded in the corresponding quarter of 2013 however, the increase has been stark. In Q4 of 2013, just $32.98 million was imported for the purpose of Manufacturing/Production, which represented 0.70% of the total. In the corresponding quarter of 2014, this figure had increased over ten-fold, by  Capital Importation by Country of Origin.

The source of the greatest value of capital imported to Nigeria continues to be the United Kingdom, with $1,945.81 million imported in the fourth quarter of 2014, representing 43.21% of the total. Nonetheless, this represented a continuation of the decline seen since the second quarter, of $939.77 million or 32.57% from the quarter three value of $2,885.59 million. The portion of the total subsequently declined by 0.86% points.

Marginal declines were also observed in Nigeria’s second largest source of capital, the United States. From its 2014 peak of $1,128.70 million, it declined by $54.62 million or 4.84% to $1,074.08 million in quarter four. Nevertheless, its share of the total increased quarter on quarter, by 6.62% points to a fourth quarter value of 23.87%. Year on year, the value of capital imported from the United States remained relatively similar, declining by $44.5 million or 3.98% and retaining 23.89% of the total, a marginal 0.02% points more than the following year.

Saudi Arabia provided the third largest source of capital inflows to Nigeria.

After seeing a sharp increase in imports in quarter three to $375.00 million, there was a further rise of $60.52 million or 16.14% to reach 435.53 million in quarter four. This increased its share of the total from 5.73% in quarter three to 9.68% in quarter four. Year on year growth remained exceptionally high, with an increase of $428.39 million or 6,006.82% from the $7.13 million imported just one year previous.

Unexpectedly, Egypt ranked fourth. With inflows of $282.13 million in quarter four, it showed a rise of $231.13 million or 453.19% from the preceding quarter, and $279.10 million or 9,222.17% from that of the preceding year. Is share of the total subsequently rose from a negligible 0.06% in quarter four of 2013, to 6.27% in the same quarter of the following year.

Belgium was the source of $79.96 million or 1.78% of the total in the fourth quarter of 2014, a decline of $253.07 million or 75.99% from the third quarter total of $333.03 million, or 5.09% of the total. This is a decline of $142.01 or 63.98% from the corresponding quarter of 2013, reducing the share of the total by 2.96% from 4.74% and a ranking of third largest contributing country, to eighth just one year later.