• Tuesday, November 28, 2023
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Nigeria’s foreign direct inflows turn negative for first time since 1995


Foreign Direct Investment (FDI) inflows into Africa’s biggest economy turned negative in 2022 for the first time since 1995, according to latest data by United Nations Conferences on Trade and Development (UNCTAD).

Nigeria’s FDI flows came in at -$187 million in 2022 due to equity divestments. That’s compared to the $3.3 billion recorded the year before.

Read also:Trillion-naira tax incentives fail to lift FDI

“Negative numbers of FDI inflows may indicate divestment in assets or discharges of liabilities,” Astrit Sulstarova, chief, Data and Trends Section at UNCTAD.

“In the case of equity, the direct investor may sell all or part of the equity held in the direct investment enterprise to a third party; or the direct investment enterprise may buy back its shares from the direct investor thereby reducing or eliminating its associated liability,” Sulstarova said.

Details later…