The Nigerian economy recorded a total decline of $2.1bn in investment inflow in the first 12 months of the administration of President
Muhammadu Buhari. The $2.1bn, when converted based on the N305.5 per dollar official exchange rate of the Central Bank of Nigeria, translates to about N642bn.
Investigations showed that since July 2015, the country had been experiencing persistent decline in the value of direct and portfolio investments.
An analysis of the capital importation report obtained from the National Bureau of Statistics revealed that the country attracted a total investment inflow of $2.75bn in the third quarter of 2015.
However, owing to the harsh operating environment coupled with exchange rate uncertainties, the inflow had declined by $2.1bn to $647.1m at the end of June this year. The report stated that all the three major components of investment such as Foreign Direct Investment, portfolio investment and other investments recorded huge declines in the one- year period.
In terms of FDI inflow, an analysis of the report showed that the economy attracted the sum of $717.72m as of the third quarter of 2015. The inflow, according to the report, dropped to $133.02m at the end of the second quarter of this year.
For portfolio investment, which is made up of equity, bonds and money market instruments, the report stated that the sum of $1.09bn was invested in the third quarter of last year. The $1.09bn investment, it added, dropped by $673.68m to $245.32m at the end of June this year.
For other investments made up of trade credits, loans, currency deposits and other claims, the report stated that the sum of
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