The United Nations Conference on Trade and Development (UNCTAD) has disclosed that Nigeria’s Foreign Direct Investment (FDI) fell by 36 per cent to $ 2.2 billion in 2018 from $3.5 billion in 2017.
UNCTAD, in its Global Investment Trends Monitor for 2018, stated that despite Africa rising by 6.0 per cent in FDI inflows in 2018, Nigeria experienced a huge cut back, while the continent’s FDI inflows hit $40 billion last year from $38 billion recorded in 2017. Meanwhile, the report stated: “Global FDI fell by 19 per cent in 2018, to an estimated US$ 1.2 trillion from US$1.47 trillion in 2017.
The third consecutive drop brings FDI flows back to the low point reached after the global financial crises. “The decline was concentrated in developed countries where FDI inflows fell 40 percent to an estimated US$451 billion mainly due to large repatriations of accumulated foreign earnings by United States Multinational Enterprises, MNEs, following tax reforms.”
But the recent Global Investment Trends Monitor report said that Nigeria reported a few significant greenfield project announcements in the oil and gas and chemical sectors, which could lead to a recovery in 2019. On Foreign Direct Investment inflow in Africa, the report stated: “Aside from Nigeria, another large oil producer, Angola recorded a decline in its foreign direct investment inflow to $5.1 billion in 2018.
Meanwhile, Egypt topped the list of best performing FDI, after the country’s inflow increased by 7 per cent from $7.4 billion to $7.9 billion. South Africa recorded a strong recovery in 2018 after the country’s FDI inflow rise to $7.1 billion from $1.3 billion in 2017.”