The Federal Government’s revenue from Foreign Direct Investment into Nigeria in the second quarter of 2024 dropped to $29.83m.
The latest capital importation report by the National Bureau of Statistics shows that the FDI dropped by 65.33 per cent compared to the $86.03m recorded in the same period last year.
The development marks the lowest level ever recorded based on available data up to 2013.
It also dropped by 74.97 per cent from the $119.18m reported in the preceding quarter of 2024.
Data from the NBS shows that Nigeria’s FDI includes equity and other capital. Most of the FDI in Q2 2024 came from equity investment, amounting to $29.82m.
This represents a sharp decrease of 74.98 per cent compared to $119.17m in Q1 2024. On a year-on-year basis, equity investment declined by 65.33 per cent from $86.02m in Q2 2023.
The other component of FDI, classified as “Other Capital,” recorded a minimal inflow of $0.0085m in Q2 2024, which is down by 33.33 per cent from $0.01275m in both Q1 2024 and Q2 2023.
Further analysis revealed that FDI made up only about 1.15 per cent of the total capital importation of $2.60bn in the quarter under review.
Also, foreign currency loans, which include portfolio investments and direct loans, contributed $2.55bn, representing 98.08 per cent of the total inflows.
In Q2 2024, Nigeria experienced a significant decrease in both portfolio investments and foreign currency loans.
Portfolio investments for Q2 2024 stood at $1.40bn, marking a sharp decline of 74.97 per cent from $5.60bn recorded in the preceding quarter, and a 65.33 per cent drop compared to the $4.05bn reported in Q2 2023.
Similarly, foreign loans, which constitute a substantial portion of Nigeria’s capital importation, recorded an inflow of $1.15bn in Q2 2024, reflecting a 74.98 per cent decrease from $4.60bn in Q1 2024.
When compared to the same period in the previous year, where loans amounted to $3.32bn in Q2 2023, the decline was 65.33 per cent.
Nigeria’s capital importation of $2.60bn represented an increase of 152.81 per cent year-on-year compared to $1.03bn in Q2 2023.
The figure marks a decline of 22.85 per cent from the $3.38bn recorded in the first quarter of 2024.
The report read. “In Q2 2024, total capital importation into Nigeria stood at $2,604.50m, higher than $1,030.21m recorded in Q2 2023, indicating an increase of 152.81 per cent. In comparison to the preceding quarter, capital importation declined by 22.85 per cent from $3,376.01m in Q1 2024.”
Portfolio investments emerged as the primary driver of the capital inflows, contributing $1.40bn, or 53.93 per cent of the total.
