According to a fresh report from the National Bureau of Statistics, Nigeria attracted USD 43 Bn worth of investments between January 2015 and December 2018. Based on the current naira to dollar exchange rate of the CBN, the USD 43.81 Bn is equivalent to about NGN 13. 36 Tn.
According to a document retrieved from the source, the investment was attracted from three major sources. It included Foreign Direct Investments comprising equity and other capital, Portfolio investment comprising equity, bond and market instruments. The third source included other investments comprising trade credits, loans, currency deposits and a host of other claims.
NBS, analyzing the study further, revealed that the West African Nation’s foreign exchange policy, the Economic Recovery and Growth Plan as well as the economic recession in 2016 all witnessed a massive capital importation over the period. An investigation uncovered that before the economic downturn of 2015, the level of investment inflow in Nigeria was at an upward trajectory.
Nonetheless, the economic crisis which swung few months after the present administration’s assumption of office was found to have had an investment inflow involving a sharp decline to nearly half of the 2014 value of USD 20.76 Bn, dropping to USD 9.65 Bn in 2015. It has also been revealed that in 2016, the value of the investment flow continued to decrease by USD 4.55 Bn from USD 9.65 Bn in 2015 to USD 5.1 Bn.
The report testified that economic recovery began in Nigeria in 2017, as local and foreign investors raised their stake from USD 7.1 Bn to USD 12.2 Bn. During 2018’s fiscal period, the country roped in no less than USD 16. 81 Bn in investments, according to the NBS data.
2018, the largest amount of investment flow by type was gotten through portfolio funding, which is responsible for USD 11.8 Bn. This was followed by other investment, which accounted for USD 3.81 Bn or 22.69 per cent of total capital, while Foreign Direct Investment had USD 1.19 Bn or 7.11 per cent of total capital imported in 2018.
In terms of destination, the report stated that the United Kingdom took the top source spot of capital investment in Nigeria in 2018 with USD 6 Bn. This, according to NBS, accounted for 35.74 per cent of the total capital inflow in 2018. This was followed by the United States with USD 3.57 Bn; South Africa, USD 1.15 Bn; the United Arab Emirates, USD 937.19 Mn; Belgium, USD 886.08 Mn; and Singapore, $780.87 Mn.
Featured Image: Company.com