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.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.