The Central Bank of Nigeria has revealed that the manufacturing and financial sector of the economy instigated the rise in capital outflow in Nigeria.
The CBN stated this during it monthly economic report (October 2021). The apex bank of Nigeria explained that capital outflow grew by 7.6 per cent , with the primary catalysts the manufacturing and financial sector.
In contrast, the problem of capital inflow into the economy has been an enormous problem for the CBN. The alluring nature of the international financial market securities has also dented the prospects of improved capital inflow.
The Central Bank of Nigeria noted that loan and capital primarily encapsulated capital outflow in Nigeria. Words from the report “A disaggregation of capital outflows by type of investment reveals that outflows of loans was US$0.34 billion, or 38.3 per cent of the total, dividends US$0.03 billion or 2.9 per cent, capital was US$0.50 billion or 56.5 per cent, while other outflows at US$0.02 billion accounted for 2.3 per cent of the total,”
The apex bank also stated that capital outflow increased, exceeding previous month. Words from the report ”Capital outflow increased by 7.6 per cent, driven mainly by financing and production/manufacturing sectors. Total capital outflow amounted to US$0.88 billion in October 2021, relative to US$0.82 billion in September 2021. “
The Central Bank also stated “Disaggregation of capital outflow by sectors reveals that outflow through the financing sector at US$0.37 billion was 42.3 per cent, production/manufacturing, US$0.19 billion (22.0 per cent), banking, US$0.12 billion (13.7 per cent), and telecommunications, US$0.10 billion (11.1 per cent). Other sectors accounted for the balance”