Nigeria’s capital imports declined by 30.42% annually in the first half of 2023, from $3.11 billion to $2.16 billion, according to the National Bureau of Statistics. The decline is attributed to a decrease in foreign direct investment, which fell by 17.43% to $86.03 million.
However, Nigeria increased its foreign loans, borrowing $1.21 billion, an increase of 17.43% from the same period in 2022.
The increase in foreign loans indicates that Nigeria is becoming more dependent on foreign debt to finance its capital imports.
The production sector saw the largest inflow of capital imports in H1 2023, with $605.04 million, followed by the banking sector with $194.58 million, and shares with $68.63 million.
Only nine states attracted foreign investors in H1 2023: Lagos, Abuja, Adamawa, Akwa Ibom, Anambra, Ekiti, Niger, Ogun, and Ondo.
The World Bank recently reported declining FDI into Nigeria due to low foreign exchange availability, security concerns, and other structural issues.
