FDI drops by 48% in two years

Foreign Direct Investment in Nigeria has dropped by $325.82m in two -year, according to data from the National Bureau of Statistics.

According to capital importation reports by the NBS, in the first nine months of 2019, the FDI contributed a total of $666.33m to aggregate capital inflow.

However, when compared to the same period in 2021, it was observed that the FDI fell to $340.52m, representing a decrease of 48.9 per cent.

The FDI refers to an investment in the form of controlling ownership in a business in one country by an entity based in another country.

It is one of the major channels of generating capital inflows into Nigeria alongside Foreign Portfolio Investment.

A breakdown of the FDI in 2019 shows that in the first quarter of the year, the FDI stood at $243.3bn but began to fall in subsequent quarters, $22.89m in Q2 and $200.08m in Q3.

While the FDI fell in 2021, a close look at foreign investment flows in 2020 shows that despite the heavy impacts of the COVID-19 pandemic during 2020, the FDI rose to $777.63m at the end of the first three quarters of the year.

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