In the second quarter of 2024, the Federal Government’s revenue from Foreign Direct Investment (FDI) into Nigeria fell to $29.83 million.
According to the latest capital importation report from the National Bureau of Statistics (NBS), this represents a 65.33 percent decrease from the $86.03 million recorded during the same period last year.
This drop marks the lowest level of FDI ever recorded, based on data available since 2013.
Additionally, the FDI declined by 74.97 percent compared to the $119.18 million reported in the previous quarter of 2024.
The NBS data indicates that Nigeria’s FDI includes both equity and other capital. In Q2 2024, the majority of FDI came from equity investment, totaling $29.82 million.
This reflects a significant decline of 74.98 percent from $119.17 million in Q1 2024. Year-on-year, equity investment dropped by 65.33 percent from $86.02 million in Q2 2023.
The other component of FDI, categorized as “Other Capital,” saw a minimal inflow of $0.0085 million in Q2 2024, down by 33.33 percent from $0.01275 million in both Q1 2024 and Q2 2023.
Further analysis revealed that FDI accounted for only about 1.15 percent of the total capital importation of $2.60 billion during the reviewed quarter.
Foreign currency loans, which encompass portfolio investments and direct loans, contributed $2.55 billion, representing 98.08 percent of the total inflows.
In Q2 2024, Nigeria experienced a significant decline in both portfolio investments and foreign currency loans.
Portfolio investments in Q2 2024 amounted to $1.40 billion, reflecting a sharp decrease of 74.97 percent from $5.60 billion recorded in the previous quarter and a 65.33 percent drop compared to the $4.05 billion reported in Q2 2023.
Similarly, foreign loans, a major component of Nigeria’s capital importation, recorded an inflow of $1.15 billion in Q2 2024, representing a 74.98 percent decline from $4.60 billion in Q1 2024.
Compared to the same period last year, when loans totaled $3.32 billion in Q2 2023, this marks a 65.33 percent decrease.
Nigeria’s total capital importation of $2.60 billion indicated a year-on-year increase of 152.81 percent compared to $1.03 billion in Q2 2023.
However, this figure also reflects a 22.85 percent decline from the $3.38 billion 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.