Nigeria records $90m FDI in one month

Nigeria recorded Foreign Direct Investment totalling $90m in October according to figures obtained from the Central Bank of Nigeria on Wednesday.

The CBN disclosed in its monthly economic report that in the review period, capital inflow declined by 71.4 per cent due to tight global financial conditions, as countries, particularly, the developed economies struggled with the second wave of the COVID-19 pandemic.

Part of the report stated, “Capital importation data showed that inflow declined to $0.19bn in the review period, below $0.67bn in September 2020.

According to the report, capital importation by nature of investment was dominated by portfolio investment, which accounted for 41.5 per cent, followed by production/manufacturing (16.3 per cent), financing (13.4 per cent), trading (9.6 per cent) and agriculture (eight per cent).

A breakdown of capital by originating country showed that the United Kingdom took the lead with 25.3 per cent, the Netherlands and Singapore accounted for 14.8 per cent and 8.3 per cent respectively of the total inflow, while by destination, Lagos State, Abuja and Enugu were the top recipients of the inflow at $0.11bn, $0.07bn and $0.01bn respectively.

It stated that the moderation in the repatriation of dividends by non-resident investors resulted in the 18.6 per cent decline in the capital outflow to $0.48bn in October 2020, relative to the $0.59bn in the preceding month.