Economy attracted N20.89tn investments in five years – NBS - PUNCH
BY Ifeanyi Onuba
Nigerian economy attracted a total investment inflow of $68.5bn (N20.89tn) between 2013 and 2017, figures obtained from the National Bureau of Statistics have revealed.
An analysis of the capital importation report made available to our correspondent on Friday showed that investment inflows came from three main sources.
They are Foreign Direct Investments made up of equity and other capital; portfolio investments, comprising equity, bond and money market instruments; and other investments made up of trade credits, loans, currency deposit and other claims.
A further analysis of the report indicated that the Nigeria’s foreign exchange policy and the economic recession largely shaped capital importation over the five year period.
For instance, the report stated that prior to the economic recession of 2015, Nigerian capital importation was high and rising.
It stated that the level of investment inflows grew from $20.83bn in 2013 to $20.76bn in 2014.
However, at the onset of the economy crisis, the report stated that investment inflow recorded a sharp decline to a half of the 2014 value of $20.76bn, dropping to $9.65bn in 2015.
The report showed that in 2016, the value of investment inflow remained depressed, decreasing by $4.55bn from $9.65bn in 2015 to $5.1bn.
It, however, noted that a recovery began in 2017, as investors raised their stake by $7.1bn to $12.2bn.
The report showed that with a total inflow of $47.4bn, portfolio investment made up of equity, bond and money market instruments, accounted for the highest investment within the five year period.
This is followed by other investments such as trade credit, loans, currency deposits and other claims with $14.11bn.
Foreign direct investment made up of equity and other capital had inflow of $7.03bn.
Commenting on the issue, the Trade Advisor to the Minister of Industry, Trade and Investment and Chief Trade Negotiator for Nigeria, Ambassador Chiedu Osakwe, said contrary to widespread belief that foreign investors were shying away from Nigeria as a result of uncertainty in the foreign exchange market, their interest was the highest in recent times.
He said that the interest by investors in the economy was enormous owing to the investors’ confidence in the ability of the administration of President Muhammadu Buhari to reposition the economy on the path of growth.
He listed some of the countries where investors were investing in Nigeria as the United States, Japan, Singapore, China and United Kingdom.
He said, “The interest by foreign investors in the Nigerian economy is the highest that we have seen since 1979. The question we ask ourselves is, why? And the answer is based on the scale of the Nigerian economy, the opportunities of the economy and the growth potential.
“And the key is the high standard governance bar that President Muhammadu Buhari has set that everyone must be under the law and that economic crimes and misdemeanours shall not go unpunished.
“We are witnessing the keenest and deepest expression of interest in the Nigerian economy from the United States, Europe, United Kingdom, Singapore, China and Japan.”