SUN OCT 13 2024-theGBJournal| Foreign Direct Investment (FDI) into Nigeria plummeted to $29.83 million in Q2 2024, marking its lowest level since 2013.
This sharp decline, driven by the devaluation of the naira and an unstable foreign exchange market, represents a 65.33% drop from $86.03 million in Q2 2023 and a steep 74.97% fall from $119.18 million in the previous quarter.
Equity investments, which accounted for the majority of FDI, also witnessed a significant decrease, while the “Other Capital” component saw a minimal inflow of just $0.0085 million.
The overall capital importation into Nigeria during this period totaled $2.60 billion, but nearly 98% of this came from foreign currency loans, reflecting investors’ preference for safer financial instruments over long-term equity commitments.
This reliance on short-term investments and debt instruments, while providing immediate liquidity, does little to drive sustained economic growth or infrastructure development.
”The downturn highlights Nigeria’s ongoing struggle to attract stable, long-term investments amid global economic uncertainties and domestic challenges,” says analysts at Comercio Partners.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
