The National Bureau of Statistics (NBS) on Friday last week, revealed that Nigeria’s Foreign Direct Investment (FDI) recorded a drop by 59.65 percent in 2020 to $9.68 billion from $23.99 billion in 2019, the lowest since 2016.
What the latest figure from NBS’s capital importation report means is, Nigeria is now firmly rooted at the bottom with a $23 billion difference among its peers identified as emerging economic giants in the turn of the new millennium
The emerging country peers include Mexico, Indonesia, and Turkey, which together with Nigeria were classified as “MINT”.
The term “MINT” was coined in 2001 by Goldman Sachs, an economist, Jim O’Neill for emerging economic giants and was used to describe the economies of Mexico, Indonesia, Nigeria, and Turkey.
In arriving at the $23 billion gap estimate, Ripples Nigeria multiplied the average FDI inflows per capita of Mexico, Indonesia, and Turkey, derived from United Nations Conferences on Trade and Development (UNCTAD) investment trade monitor for 2020.
The average was found and multiplied by Nigeria’s population of 201 million according to World Bank.
Nigeria’s 2020 FDI inflow is $9.68 billion according to the National Bureau of Statistics, which gives an FDI per capita of $48, the lowest among peers.
Mexico FDI per capita is $205 given that it recorded $26.3 billion in 2020 and is home to some 127.6 million people as at 2019.
Indonesia, with a population of 270.6 million, attracted $18 billion in 2020 which comes to about $66.
Turkey’s $6.8 billion FDI inflow implies that with a population of 82 million it has an FDI per capita of $83.
The average for the three countries came to $118, which when multiplied by 201 million turned in $23.7 billion.
To put the gap into perspective on how far Nigeria has fallen, Ripples Nigeria analysis of UNCTAD data also revealed in the start of the new millennium, that it was almost equal start for Nigeria with its peers.
Nigeria’s FDI total stock in 2000 was USD$ 23.7billion, ranking in third, behind Mexico’s $121.6 billion and Indonesia’s $25 billion. Turkey had the least FDI stock of $18.8billion.
By 2019, 19 years later, the latest UNCTAD Mexico FDI stock has jumped by 416.4 percent to $628.4 billion.
Indonesia and Turkey’s FDI stock also surged 828.2 percent and 776.6 percent to $232.6 billion and $164.9 billion, respectively.
While Nigeria on the other hand fell off third place by no small margin and is now firmly rooted at the bottom growing by only 314.6 percent with $98.6 billion FDI stock.
“The numbers are a clear indication of government’s failure and its inconsistencies in implementing key reforms,” Samuel Okiti a development economist explained to Ripples Nigeria.
“Take for example the Petroleum Industry Bill (PIB) has dragged on for so long despite its huge potential to attract foreign investments into the country,” he added.
However, Okiti said all hope is not lost if the federal government is ready to work to correct those bottlenecks that makes Nigeria such a difficult country for business investment.
Similarly, in their paper, Stanley Chukwudi, Okoye, Peter Uchenna and, Ebekozien, Andrew fingered the low presence of infrastructure development by the government, Lack of policy framework, insecurity and terrorism and a long time for return on investment among others as the most severe hindrances to the inflow of FDI.
You will also recall that Ripples Nigeria had reported that twenty-six Nigerian states recorded no investment in 2020 and eight of those states in the last two years.
Chief Executive Officer, the Nigerian Economic Summit Group (NESG), Laoye Jaiyeola, called on the government at all levels to embark on reforms aimed at attracting investments into crucial sectors of the economy.
This, according to him, is because the business-as-usual scenario will only lead Nigeria down the drain of economic hardship, wider income inequality and an increase in the poverty rate.
Join the conversation
INVESTIGATION….N.3bn down the drain: Why water projects for Enugu communities don’t work
In this concluding part, ARINZE CHIJIOKE talks about some of the projects that are serving the people and how various WASH programmes have failed to tackle...
INVESTIGATION…PARKVIEW ESTATE: Exclusive images of how billionaire property developer incurred Lagos govt‘s anger
Many have seen the demolished building, but not many know the circumstances that led to the teardown of the about...
INVESTIGATION… N.3bn down the drain, as Enugu communities suffer from dry taps
In November 2020, three organizations and the Enugu State government celebrated the completion of N300 million worth of projects that were expected...
INVESTIGATION… How herdsmen crisis compounds woes of already deprived Ogun communities
Earlier in January, the Nigerian media space was awash with reports of violence between herders and farmers across the country....
Investigation… Inside Enugu markets where traders are choked by multiple taxes
In recent times, the world economy has developed tremendously and this is partly linked with activities of petty traders who...
About 80 athletes to represent Team Nigeria in 10 Tokyo Olympics events
The Ministry of Youth and Sports Development has unveiled a comprehensive plan for Team Nigeria towards a podium success at...
Dortmund beat Leipzig to win fifth German Cup
Dortmund put up a fine performance on Thursday night to beat RB Leipzig in the 2020-21 German Cup final. It...
Salah, Firmino star as Liverpool seal comeback win at Man Utd
Liverpool came from behind to beat Manchester United 4-2 in a Premier League clash at Old Trafford on Thursday. Mohamed...
Nadal, Djokovic reach Italian Open quarter-finals, Murray crashes out
Rafael Nadal and Novak Djokovic have both reached the quarterfinals of the Italian Open after winning thier respective ties on...
Lukaku, Young, two other Inter players fined for breaking COVID-19 rules
Four Inter Milan players, including Romelu Lukaku and Ashley Young have been fined for breaking Covid-19 rules in Italy. Lukaku,...
Latest Tech News
Nigeria’s ClassNG launches as open marketplace for education. 2 other things and a trivia
This line-up of stories will help you discover the latest happenings around the tech world, today. 1. Nigeria’s ClassesNG launches...
Healthtech startup launches engagement app for African nurses. 2 other things and a trivia
This line-up of stories will help you discover the latest happenings around the tech world, today. 1. Healthtech startup launches...
GirlCode partners Amazon to upskill unemployed women. 2 other things and a trivia
This line-up of stories will help you discover the latest happenings around the tech world, today. 1. GirlCode partners Amazon...
SpaceX to launch lunar mission funded with crypto. 2 other things and a trivia
This line-up of stories will help you discover the latest happenings around the tech world, today. 1. SpaceX to launch...
TechNigeria: A weekly digest of what went down in Nigeria’s tech space
It’s Saturday, again. Welcome to your favourite tech update column. Trust me to take you on a ride to catch...
Paystack launches venture in South Africa. 2 other things and a trivia
This line-up of stories will help you discover the latest happenings around the tech world, today. 1. Paystack launches venture...