Nigeria’s FDI down $2.2bln as Ghana leads with $3.3 bln in 2018

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Nigeria, Africa’s largest economy and top oil producer saw FDI drop 36 percent to $2.2 billion in 2018. This decline saw Ghana overtake Nigeria as country with the highest FDI in West Africa, recording an inflow of $3.3 billion. While some policy decisions have been blamed for Nigeria’s poor FDI inflow in 2018, UNCTAD expects 2019 to be better for the country, especially due to some significant greenfield project announcement in the oil and gas industry.

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Foreign direct investments are investments made by a firm or individual into business interests located in another country. It differs from portfolio investments in that FDIs includes establishing ownership or controlling interest while investors only buy equities in foreign companies in the latter.

“Africa registered a 6% increase in FDI inflows in 2018 (US$40billion, up from a revised US$38 billion in 2017), but the growth was concentrated in few economies and the aimed for the shift from the natural resources dominated FDI profile of the continent towards a more balanced sectoral distribution was only partially visible, in that the relatively diversified economies, such as Egypt and South Africa, saw more stable and increasing FDI inflows,” the report read.

“Egypt with an increase of 7% from $7.4 billion to $7.9 billion, was the biggest recipient of FDI in Africa in 2018 with investments in real estate, food processing, oil and gas exploration and renewable energy.

“In contrast, flows to the two largest oil producers of the continent, Nigeria (-36% to $2.2 billion) and Angola were low, with a decline and a net divestment respectively.

“In West Africa, Ghana ($3.3 billion) overtook Nigeria as the largest recipient of FDI in 2018. However, Nigeria reported a few significant greenfield project announcements in the oil and gas and chemical sectors, which could lead to a recovery in 2019.”

According to the report, the drop in FDI was most felt in developed economies, where inflows fell by 40%.

The dip recorded globally has brought FDI to the low point it reached after the global financial crisis.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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