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FDI crashes by 78% in three months amid worsening dollar crisis

Foreign Direct Investment in Nigeria has crashed by 78 per cent in three months amid a worsening foreign exchange crisis in the country. Figures obtained from the National Bureau of Statistics showed that the country’s FDI fell from $698.78m in the fourth quarter of last year to $154.97m in the first quarter of 2022, indicating a decrease of 78 per cent of $543.81. According to the report, the nation recorded of an FDI of $154.97m in the first quarter which comprised only equity investment. The report noted that Nigeria recorded $698.78m FDI which comprised of equity capital of $692.58m and other capital of $6.2m in the fourth quarter of 2021. The country recorded $107.81m, $77.97m and $154.76m FDI in the third, second and first quarters of 2021 respectively. The Central Bank Governor, Godwin Emefiele, had said at the last Monetary Policy Committee meeting that a marginal interest rate hike signaled the need to curb inflation and could moderate foreign exchange pressures in the medium term by attracting foreign investors. He said “The net FDI has been very low while there was a substantial reversal of FPI flows from the country in the fourth quarter of 2021.