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Foreign investment into Nigeria drops by 53% –NBS

Foreign investment into Nigeria drops by 53% --NBS

The National Bureau of Statistics (NBS) has disclosed that Nigeria in the third quarter of 2016 recorded a decline in private sector investment, classified under portfolio and other investments, which fell by 53 and 45.1 per cents respectively, when compared to the figure in 2015.

 

In its latest data released on Monday, the NBS said, however, that there was a quantifiable growth in foreign direct investment (FDI), as capital importation into the country within the period stood at $1.822 billion, a 74.84 per cent increase, when compared to the figure in the second quarter of the 2016.

 

The statistics office was quick to point out that when the FDI is compared with the figure of 2015, Nigeria still suffered a 33.7 per cent drop in that level of capital importation in the same period.

 

The highest level of capital imported since January was recorded only in August, when $894 came into the country.

 

In September, $649.76 million was imported, which was still more than the figure of any month in the first and second quarters.

 

Read also: Tension as NNPC disagrees with Kachikwu on fuel pump price

 

NBS added that most of the quarterly increase in the value of capital importation came from foreign loans, which took up 85 per cent in bonds and other money market instruments.

 

In the third quarter of 2015, portfolio investment was the largest component of imported capital and accounted for $920.32 million, or 50.51 per cent.

 

The relatively strong growth in FDI as the largest investment type was expected to account for 50.51 per cent in the third quarter, compared to 18.69 and 30.80 per cents for other investment and FDI respectively.

 

But expects have expressed fear that the country may be plunged into huge debt crisis in the next five years when most of the instruments, including bonds and debt portfolios will mature for redemption.

By Emma Eke…

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