FDI Inflows Sustain Growth By 30.73% To $252.83m

Total Foreign Direct Investment (FDI) inflows into the country rose by 30.73 per cent, or $59.43 million, to $252.83 million, in the first nine months of 2024, compared with $193.40 million in the corresponding period of the preceding year, findings by New Telegraph show.

According to data released by the National Bureau of Statistics (NBS), FDI inflows into the country rose to $103.82 million in Q3’24 from $29.83 million and $119.18 million in Q2 and Q1’23 respectively.

This means that total FDI inflow between January and September last year amounted to $252.83 million. An analysis of the NBS data, however, indicates that although FDI inflow headed north for the most part of last year, its contribution to total foreign investment in the country is not as significant as, for example, the contribution from Foreign Portfolio Investment (FPI).

For instance, commenting on the latest data released by the NBS, analysts at FBNQuest, stated: “Capital Importation report from the National Bureau of Statistics (NBS) reveals that capital inflows into Nigeria declined by -52 per cent quarter-on-quarter (QoQ) to approximately $1.3 billion in Q3’24.

However, on a year-onyear (YoY) basis, the value was 91 per cent Y-o-Y higher. “The sequential reduction in capital inflow was driven by double-digit decreases in inflows from Foreign Portfolio Investments (FPI) and other investments of the total capital inflow; portfolio investments comprised approximately 72 per cent, while other investments and Foreign Direct Investments (FDI) accounted for about 20 per cent and eight per cent, respectively.”

The analysts further said: “Despite its significant contribution to capital inflows, FPI inflow fell by -36 per cent QoQ to $899 million, driven by reductions across all segments, with inflows into equity, bonds, and money market investments declining by between -43 per cent and -61 per cent.

“Other investments, the next largest segment, declined by -79 per cent QoQ to $250 million. The share of loans, which typically accounts for over 90 per cent of the category’s inflow, plummeted to $235 million from almost $1.2 billion in Q2’24. “Conversely, foreign direct investment inflow increased to $104 million from $30 million.