Nigeria’s foreign investments declines as capital inflow drops – Total foreign investments in Nigeria suffered a huge blow in 2020 as the overall value of capital inflows for the year decreased to $9.7 billion, down from $24 billion in 2019, a 59.7 percent decrease, lowest it has been in at least four years, data from the Nigerian Central Bank on capital importation has shown.
The data also revealed that only seven states and the federal capital territory were able to attract foreign investments in the first quarter of 2021 leaving 29 other states with zero foreign investments in the first quarter of 2021.
The data showed that Lagos, Abuja, Anambra, and Kano got capital imports of $1.58 billion, $318.4 million, $4.1 million, and $2.4 million respectively. Delta, Ogun, Akwa-Ibom, and Kwara also respectively got capital imports of $1 million, $757,187, $737,505, and $229,015.
Reacting to the statistics, a consultant at Covenant University, Dr. Jeremiah Ogaga, said resolving Nigeria’s core macroeconomic vulnerabilities will result in more international investment.
He said, “Foreign investment reflects the foreign sector’s assessment of a country’s economic health. Nobody wants to make foreign investments in a country that lacks currency stability, is unpredictable, and has a high risk of losing money owing to inflationary consequences. Therefore, currency stability, inflation, and security (rule of law) are what would make Nigeria an enticing investment destination for foreign investors.”