The aggregate foreign capital inflow into the country during the third quarter (Q3) of 2012 increased to $6.07 billion.
The Central Bank of Nigeria (CBN) disclosed this in its "External Sector Development Report for Q3, 2012," obtained on its website.
The amount, represented an increase by $2.64 billion and $2.83 billion, compared to the $3.43 billion and $3.24 billion, recorded in second quarter 2012 and third quarter 2011, respectively. Of the total capital inflow, Foreign Direct Investment (FDI), according to the regulator, accounted for 23.79 per cent while Personal Income (PI) accounted for 76.21 per cent.
It added: "Further analysis showed that both FDI and PI inflows increased over their levels in second quarter 2012 by 81.0 and 75.9 per cent, respectively. The continued dominance of portfolio investment in aggregate foreign capital inflows suggests the need to put in place measures against capital reversal.
"The estimated current account balance posted a surplus of $5.03 billion or 7.61 per cent of gross domestic product (GDP) compared with $5 billion in the preceding and against a deficit of $3.86 billion in Q3, 2011."
The central bank attributed the performance to the lower import bills, increased export earnings and decreased out payments in respect of dividends and distributed branch profits to foreign investors.
"Further analysis revealed that imports of goods declined by 21.67 and 45.29 per cent below its level in second quarter 2012 and Q3, 2011 respectively. Also, earnings from exports of goods rose by 4.15 and 8.16 per cent when compared with the recorded levels in second quarter 2012 and corresponding quarter in 2011, respectively.
"The export earnings were largely driven by oil receipts which accounted for 97.4 per cent of total. The non-oil exports continued to underperform owing to high cost of production," it added.
According to the report, Nigeria's trade balance as at the period under review, improved significantly from $8.62 billion in second quarter, 2012 and $1.60 billion in Q3, 2011 respectively to $12.37 billion in Q3, 2012
Aggregate export also rose by 8.2 per cent from $22.53 billion in Q3, 2011 to $24.37 billion in Q3, 2012 while aggregate imports (CIF) declined by 42.7 per cent to $11.99 billion in the review period. It also noted that degree of openness, depicting the share of Nigeria's total external trade to GDP also dropped to 54.52 per cent in Q3, 2012.