According to the National Bureau of Statistics (NBS) on Tuesday, investment inflows into the country dropped by $11.1bn (N2.18tn) from $20.75bn in 2014 to $9.64bn at the end of the 2015 fiscal year.
Based on the bureau’s capital importation report, external and internal factors are responsible for what the country is facing as a result.
Regarding the external factors, the report explained that while the country had between 2012 and 2014 experienced high increase in the level of investment inflows owing to its inclusion in the JPMorgan Bond Index, such could not be achieved in 2015.
The internal factors explained that tougher economic environment in the country was responsible for the drop in investments.
According to the report, “The total value of capital imported into Nigeria in the third quarter of 2015 was $2.74bn, up by 3.07 per cent from the preceding quarter. This was followed by a total of $1.55bn in the fourth quarter, a decline of 43.34 per cent from levels recorded in the previous quarter.
“The total for 2015 was recorded at $9.643bn. This represents a 53.53 per cent fall on the previous year when the total was $20.750bn. Each consecutive quarter of 2015 saw a larger annual fall than the previous; in the third and fourth quarter, capital inflows were respectively 58.00 per cent and 65.40 per cent lower than in the same quarters of 2014.”
The current government will be looking at taking steps that will improve its returns from investment.