How FDI In Nigeria Depreciated By 58.98% In 11 Years, Expert Says Investors Won’t Put Their Money In An Unsecured Environment
The World Bank, in its latest international debt report, has revealed that Foreign Direct Investment (FDI) in Nigeria has depreciated by 58.98% in 11 years.
Naija News reports that the Washington-based lender’s annual report tagged, ‘International Debt Report,’ indicated that between 2010 and 2021, FDI in the country plunged from $5.966 billion to $2.447 billion respectively.
The World Bank in its updated International Debt statistics for 2022 released on Friday disclosed that under the period in review, the year 2019 recorded the lowest FDI in the country when it depreciated to $851 million.
The report said it however rose in 2020 to $ 930 million despite the lockdown caused by the coronavirus pandemic, which disrupted businesses across the globe.
Naija News gathered that the National Bureau of Statistics (NBS) also recorded a fall of $325.82 million in the nation’s FDI in two years.
The FDI refers to an investment in the form of controlling ownership in a business in one country by an entity based in another country.
Reacting to the report, Professor of Economics and former Vice Chancellor, of Greenfield University, Seth Akutson, told Punch that both monetary and fiscal policies could not encourage foreign investors.
Naija News learnt that Akutson explained that investor would never put their monies in an unsecured environment characterized by the level of insecurity ravaging the country.
He advanced that “The security situation in the country does not encourage FDI. People cannot put their money in a country that is plagued with insecurity.
“Also, the policy framework of the Federal Government does not encourage investors. If you look at the capital market, you will see that there are a lot of exits in foreign portfolios.
“The fiscal policy environment and tax regime have not encouraged investors to put in their money here. Multiple taxations from left, right, and centre have not encouraged investors.
“The showman process of going to attract investors does not hold water. The real variable must be looked at.
“The Fitch report has downgraded Nigeria. When your country is downgraded, you cannot expect foreign investors to come in.”
The university don suggested to the Federal Government revisit the tax system, adding that in the interim, certain measures could be adopted to curb the negative outflow and increase the rate of investments in the country.