Foreign Direct Investment Drops By $331.2m –Report
Foreign direct investment into Nigeria fell by $331.2m to $698.78m in 2021, from the total sum of $1.03bn recorded in 2020, figures from the National Bureau of Statistics have revealed.
Nigeria recorded $154.6m, $77.97m, $107.81m and $ $358.23m FDIs during the first, second, third and fourth quarters of 2021, respectively.
The report revealed that portfolio investment in the country also fell by $1.75m to $3.39bn in 2021 from $5.14bn recorded in 2020.
It also showed that “Other Investments’ fell by $890m from $3.51tn in 2020 to $2.62tn in 2021.
The NBS report said the total value of capital importation into Nigeria in the fourth quarter of 2021 stood at $2.19bn from $1.73bn in the preceding quarter, indicating an increase of 26.35 per cent.
When compared to the corresponding quarter of 2020, capital importation increased by 109.28 per cent from $1.05bn.
The largest amount of capital importation by type was received through other investment, which accounted for 54.24 per cent ($1.19bn).
This was followed by portfolio investment with 29.39 per cent ($642.87m) and the FDI amounted to 16.38 per cent ($358.23m) of the total capital imported in Q4 2021.
Disaggregated by sectors, capital importation into tanning had the highest inflow of $645.59m amounting to 29.51 per cent of the total capital imported in the fourth quarter of 2021.
This was followed by capital imported into the production sector, valued at $360.06m (16.46 per cent) and the electrical sector with $325.55m (14.88 per cent).
Capital importation by country of origin reveals that Mauritius ranked top as source of capital imported into Nigeria in the fourth quarter of 2021 with a value of $611.45m, accounting for 27.95 per cent.
This was followed by the United States of America and the Republic of South Africa valued at $321.03m (14.67 per cent) and $285.83m (13.07 per cent), respectively.
By destination of investment, Lagos State remained the top destination in Q4 2021 with $1.98bn, accounting for 90.66 per cent of the total capital investment in Nigeria.
This was followed by investment into Abuja valued at $170.55m (7.80 per cent).
Categorisation of total capital investment by bank showed that Eco Bank Plc ranked highest in Q4 2021 with $708.58m (32.39 per cent).
This was followed by Stanbic IBTC Bank with $453.82m (20.74 per cent) and Union Bank of Nigeria Plc with $284.60m (13.01 per cent)
