Friday , June 14 2024

Investment Inflow to Nigeria Slows Down Over Forex Crisis, Insecurity

Foreign direct investment in Nigeria has waned because of inadequate forex, security challenges, and other structural issues, the World Bank has said.

 

The global bank in its ‘Nigeria Development Update (December 2022): Nigeria’s Choice’ report adds that these challenges have also impacted the net withdrawal of equity by foreign investors.

 

It added that FDI and foreign portfolio investments contributed only one per cent to the country’s GDP and do not compare favourably with similar economies of the world.

Investment Inflow to Nigeria Slows Down Over Forex Crisis, Insecurity (spadetv.africa)

On forex it stated, “Net foreign direct investment and foreign portfolio investment flows into the Nigerian economy remain low, totalling only about 1 per cent of GDP.

 

“Net FDI inflows are negative, reflecting net withdrawals of equity by foreign investors. FDI and FPI flow into Nigeria do not compare favourably with similar economies of the world, reflecting difficulties with FX availability, security concerns, and other structural challenges in recent years.

 

“Low growth and slow structural transformation have contributed to this outcome — the pace of structural transformation of the domestic economy of the 2000s has not been sustained over a sufficiently long period.”

 

FDI inflow into the country fell by 58.98 per cent in 11 years. The Washington-based lender stated this in its annual report tagged, ‘International Debt Report’. It said the country’s FDI depreciated from $5.97billion in 2010 to $2.45bn in 2021.

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