Nigeria Loses $6.91Bn as FDI Declines by 81.46% – NBS

National Bureau of Statistics (NBS) has said that foreign investments into Nigeria declined by 81.46 per cent ($6.91bn) from $8.49bn in the first quarter of 2019 to $1.57bn in the corresponding quarter of 2022.

The NBS disclosed this in its recent quarterly report on ‘Nigerian Capital Importation’.

The bureau noted that since the first quarters of 2019, 2020, 2021, and 2022, there has been a steady decline in capital inflows into the nation’s economy.

According to the report, the total capital inflow into the economy fell by 31.01 per cent from $8.49bn in Q1 2019 to $5.85bn in Q1 2020; it fell by 67.45 per cent to $1.91bn in Q1 2021; and declined further by 17.46 per cent to $1.57bn in Q1 2022.

The report, which segmented foreign investment into three main investment categories: foreign direct investment, portfolio investment, and other investments, also dosclosed that in Q1, 2019, the largest amount of capital imported into the Nigeria was through portfolio investment.

The report also shows that the banking sector dominated inflows that quarter and the United Kingdom was responsible for most of the inflows.

Equally, the report shows that in portfolio investments also dominate inflows Q1 2020, while banking and the UK also retained their respective leadership positions.

‘‘In Q1 2021 and Q1 2022, portfolio investments was responsible for most of the capital inflows into the nation, while banking raked in the highest and the UK provided the most investment,” the report added.