Nigeria witnessed a steep decline in Foreign Direct Investment (FDI) inflows, with revenue dropping to $29.83 million in the second quarter of 2024, according to the latest report by the National Bureau of Statistics (NBS).
This marks a 65.33% year-on-year reduction from the $86.03 million recorded in Q2 2023, and a 74.97% fall from the $119.18 million posted in Q1 2024.
The figure represents the lowest level of FDI since 2013, reflecting growing investor uncertainty and economic challenges in the country. A breakdown of the data shows that equity investments accounted for the majority of the inflows at $29.82 million, while “Other Capital” stood at a mere $0.0085 million, down by 33.33% from previous quarters.
FDI only contributed 1.15% to Nigeria’s total capital importation of $2.60 billion in Q2 2024. In contrast, foreign currency loans, which include portfolio investments and direct loans, made up a staggering 98.08% of the total capital importation, amounting to $2.55 billion.
The drop in FDI highlights the need for strategic reforms to attract sustainable investment and improve Nigeria’s economic outlook.
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