Foreign Direct Investment (FDI) into Nigeria dropped significantly in the second quarter of 2024, with the Federal Government’s revenue from FDI falling to $29.83 million.
According to the latest capital importation report by the National Bureau of Statistics (NBS), this marks a 65.33% decline compared to the $86.03 million recorded in the same period in 2023. It also represents the lowest level of FDI since 2013.
The report further indicates a 74.97% decrease from the $119.18 million recorded in the first quarter of 2024.
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The majority of FDI in Q2 2024 came from equity investments, which amounted to $29.82 million, showing a sharp decline of 74.98% from Q1 2024’s $119.17 million. Year-on-year, equity investments dropped 65.33% from $86.02 million in Q2 2023.
The “Other Capital” component of FDI saw a minimal inflow of just $0.0085 million, down by 33.33% from $0.01275 million recorded in both Q1 2024 and Q2 2023.
FDI accounted for only 1.15% of the total capital importation of $2.60 billion in Q2 2024, while foreign currency loans, including portfolio investments and direct loans, contributed a significant $2.55 billion, or 98.08% of total inflows.
Nigeria also saw a sharp decline in portfolio investments and foreign currency loans. Portfolio investments for Q2 2024 totaled $1.40 billion, a steep 74.97% drop from $5.60 billion in the previous quarter, and a 65.33% decrease from $4.05 billion in Q2 2023. Foreign loans also fell by 74.98% from $4.60 billion in Q1 2024 to $1.15 billion in Q2 2024, a 65.33% drop compared to $3.32 billion in Q2 2023.
Despite these declines, Nigeria’s total capital importation for Q2 2024 increased by 152.81% year-on-year to $2.60 billion, compared to $1.03 billion in Q2 2023. However, this figure represents a 22.85% drop from the $3.38 billion recorded in Q1 2024.
The NBS report highlighted that portfolio investments were the largest contributors to capital inflows in Q2 2024, accounting for $1.40 billion, or 53.93% of the total.
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