Foreign investments in Nigeria have decreased by 81.46 percent ($6.91 billion), from $8.49 billion in the first quarter of 2019 to $1.57 billion in the same quarter of 2022, according to the National Bureau of Statistics, NBS.
This information was provided in the bureau’s quarterly report on “Nigerian Capital Importation,” which was published on Sunday.
Why This is happening
The bureau claims that there has been a persistent decrease in capital inflows into the economy of the country during the first quarters of 2019, 2020, 2021, and 2022.
The research shows that the entire inflow of capital into the economy decreased by 31.01 percent, from $8.49 billion in Q1 2019 to $5.85 billion in Q1 2020, by 67.45 percent, to $1.91 billion in Q1 2021, and by further 17.46 percent, to $1.57 billion in Q1 2022.
The research also highlighted that in Q1, 2019, portfolio investments accounted for the majority of the capital imported into Nigeria. The report divided foreign investment into three main investment categories: foreign direct investment, portfolio investment, and other investments. Additionally, it demonstrates that the banking industry accounted for the bulk of inflows during that quarter, with the United Kingdom accounting for the remainder.
In a similar vein, the research demonstrates that investments in portfolios dominated Q1 2020 inflows, while banking and the UK both maintained their respective dominance positions.
Portfolio investments accounted for the majority of the country’s capital inflows in Q1 2021 and Q1 2022, while banking brought in the biggest sums and the majority of investment came from the UK.