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Diminishing Foreign Direct Investments Is A Huge Challenge for Nigeria

Diminishing Foreign Direct Investments Is A Huge Challenge for Nigeria

This is one of Nigeria’s major challenges: diminishing foreign direct investments. Yes, “revelations from a presentation by Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, have shed light on a concerning trend in the country’s foreign direct investment (FDI).

“According to Edun’s presentation, FDI in Nigeria has seen a significant decline, plummeting from $22.7 billion in 2014 to a mere $3.7 billion in 2023. This staggering $19 billion drop over the span of a decade underscores the challenges facing Nigeria’s investment climate and economic stability.”

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Year 2014 – $22.7 billion

Year 2023 – $3.7 billion

That is statistically significant. The question is this: why did that happen? You can also add: do Nigerians really care? When we write here that Nigeria has lost a decade, many will attack me because my name is Ndubuisi. But if for the sake of this post, you assume, I am Wale Adamu Ndubuisi Effong …, would you like to understand why investors have moved on from Nigeria, that within a decade we saw a $19 billion drop?

The reserves data and it correlates with the movement of Naira/USD. Largely, we are fighting with the reserves to defend Naira in Nigeria https://www.tekedia.com/nigerias-strategy-for-defending-naira-must-not-rely-solely-on-using-foreign-reserves/

Source: CBN data

Foreign Direct Investments in Nigeria Plummet by $19 Billion Over 10 Years – Finance Minister


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