• Wednesday, June 19, 2024
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BusinessDay

Nigeria’s foreign investment hits 4-year low

Foreign investments in Africa’s biggest economy declined by 59.7 percent to $9.68 billion in 2020 from $23.9 billion in 2019, according to the latest report by the National Bureau of Statistics (NBS) released on Friday.

The latest figure is the lowest recorded since 2016, according to data compiled by BusinessDay. This is in line with a recent United Nations Conferences on Trade and Development (UNCTAD) report which stated that Foreign Direct Investment inflows fell by 21.2 percent in 2020 to $2.6billion in 2020.

Capital is either imported in the form of Shares, or directly imported by different sectors of the economy.

Total capital importation in the fourth quarter (Q4 2020) stood at $1.06 billion, down by 26.8 percent compared to third quarter (Q3 2020) and by 71.9 percent when compared to the same period in 2019.

“The largest amount of capital importation by type was received through Other investment, which accounted for 73.2 percent ($783.3 million) of total capital importation, followed by Foreign Direct Investment (FDI), which accounted for 23.5 percent ($251.3million) of total capital imported and Portfolio Investment which accounted for 3.3 percent ($35.2 million) of total capital imported in Q4 2020,” the report stated.

The report further added that by sector, capital importation by Shares dominated in Q4 2020 reaching $287.0million of the total capital importation in Q4 2020.

The United Kingdom emerged as the top source of capital investment in Nigeria in Q4 2020 with $236.9 million. This accounted for 22.1 percent of the total capital inflow in Q4 2020.

By Destination of investment, Lagos state emerged as the top destination of capital investment in Nigeria in Q4 2020 with $829.6million. This accounted for 77.6 percent of the total capital inflow in Q4 2020.

By Bank, Citibank Nigeria Limited emerged at the top of capital investment in Nigeria in Q4 2020 with $216.2 million. This accounted for 20.2 percent of the total capital inflow in Q4 2020.