Foreign Investment In Nigeria is on a Downward Spiral, Here’s Why

Foreign investment inflow (capital importation) into the country continued on downward trend in the third quarter of the year (Q3’19), declining seven percent quarter-on-quarter (QoQ), to $5.4 billion from $5.8 billion in Q2’19.

The decline in Q3’19 represents a second consecutive QoQ decline since the beginning of the year. Though foreign investment inflow rose by 305 percent, QoQ, to $8.5 billion in the first quarter (Q1’19), from $2.1 billion in Q4’18, it however, fell massively by 32 percent in Q2’19 to $5.8 billion.

The National Bureau of Statistics (NBS), in its Nigerian Capital Importation report (Q3’19) released yesterday, noted that portfolio investment accounted for the largest amount of capital importation by type with 56 per cent ($3 billion) while the banking sector dominated capital importation by sector with $1.8 billion during the quarter.