Capital importation into the country for the production and manufacturing sector crashed by 48.42 per cent in 2022.
It was observed that foreign investments in manufacturing businesses in the country fell from $100.97m in January 2022 to $52.08m in November 2022.
This was according to the Capital Importation by Nature of Business data from the Central Bank of Nigeria.
The decline in foreign investment occurred as manufacturers struggle with a rising debt profile and interest rate hikes, among other issues
It was reported that operators in the nation’s manufacturing sector saw their combined debts to Nigerian banks rise from N4.09tn in December 2021 to N5.33tn in November 2022, according to the CBN’s Sectoral Analysis of Deposit Money Banks’ Credit.
The CBN hiked the interest rate five times within a period of a year as manufacturers’ debt rose by N1.24tn in 2022.
In its November 2022 CBN Update, which was released last month, the apex bank acknowledged that there would likely be an increase in business costs, which could further drive up inflation
The bank further acknowledged the effect of the interest rate hike on manufacturers in the country.
