Following the worsening foreign exchange crisis across the country, Nigeria’s Foreign Direct Investment (FDI) has reportedly crashed by 78% in three months.
According to figures from the National Bureau of Statistics, the country’s FDI fell from $698.78m in Q4 202, to $154.97m in Q4 2022, showing a decrease of 78% with a figure of $543.81 in the past year
The report stated that the nation recorded an FDI of $154.97m in the first quarter, comprising only equity investment. According to the report, in the fourth quarter of 2021, Nigeria recorded $698.78m FDI which comprised of equity capital of $692.58m and other capital of $6.2m.
In the third, second, and first quarters of 2021, the country recorded $107.81m, $77.97m, and $154.76m FDI respectively.
Speaking at the last Monetary Policy Committee, the CBN Governor, Godwin Emefiele, stated that at the last Monetary Policy Committee meeting, the net FDI has been very low while there was a substantial reversal of FDI flows from the country in the fourth quarter of 2021.
Commenting on the major cause of this setback, the President, Association of Bureaux de Change Operators of Nigeria, Alhaji Aminu Gwadabe, expressed that the multiple exchange rates practiced in the country was discouraging foreign investors from bringing their monies into the country. Gwadabe stated that the foreign exchange market, like any other market, is determined by the market forces of demand and supply.