Nigeria’s foreign direct investments (FDI) inflow has been on the decline for 5 consecutive years now.
The total foreign capital inflow into Nigeria decreased by 27% from $5.33 billion in 2022 to $3.91 billion in 2023, according to the latest capital importation report from the National Bureau of Statistics (NBS).
There are several factors responsible for the decline in foreign direct investment inflow in Nigeria.
In 2023 financial year, Nigeria witnessed significant foreign capital inflows from different countries.
The 2023 capital importation report shows international investors from different countries contributing to the country’s economic growth.
The report revealed that some countries' investments in Nigeria declined, while others have up scaled their investments, indicating paradigm shift and the attractiveness of Nigeria as an investment destination to some international investors.
In 2022, the United Kingdom toped the list of Nigeria’s source of FDI, accounting for about 50.9% in the Q2 with investments worth $781.1 million. Singapore ranked second with 9%, followed by Republic of South Africa (8%) and UAE (6.8%). Investments from the United States totaled about 5.2% which focus more on the Nigeria’s oil sector. FDI from China are mostly channeled to a smaller number of high-profile government infrastructural projects.
We have compiled list of the top countries where Nigeria received foreign capital in 2023
- United Kingdom
- Singapore
- United States of America
- Netherlands
- South Africa
- Mauritius
- United Arab Emirates
- Hong Kong
- British Virgin Islands
- China
United Kingdom
Over the years, the United Kingdom has remained major source of foreign capital to Nigeria, with about to $1.14 billion inflow as of 2023. Although this amount represents over 50% decline from $2.76 billion recorded in 2022, the UK’s investments in Nigeria remains higher than FDI from any other country.
Singapore
Investment inflows from Singapore in 2023 reached $470.68 million, up from $420.97 received in 2022, placing the Asian country at number 2 key investors in Nigeria. This shows Singapore’s confidence and commitment to economic landscape.
United States
The United States is one of the top investors in Nigeria and has significantly increased its investments in the Nigerian economy with $442.66 million investments in 2023. This is an increase from $286.92 million in 2022. This shows continuous interest of American investors in opportunities Nigerian economy presents especially in the oil sector.
Netherlands
The Netherlands is the fourth country with highest investments in Nigeria as capital inflows from the country doubled in 2023, reaching $391.43 million, a significant up pick from $171.27 million recorded in 2022. This growth indicates depending confidence in Nigeria’s market and strong bilateral relationship between the two countries.
South Africa
Republic of South Africa is 5th top country investing in Nigeria. It’s investments in Nigeria in 2023 was $378.49 million. Although this shows a significant decline from $428.73 million in 2022, South Africa remains the African country with highest investments in Nigeria. South Africa has continued to be a top economic partner to Nigeria, with much interests in Nigeria’s communication and retail sectors.
Mauritius
In 2023, Mauritius significantly increased its investment in Nigeria to a whooping $331.07 million from $208.66 million it invested in 2022, making second African country with largest foreign investments in Nigerian. The rapidly growing investments of the island nation in the Nigerian market is an dictation of deepening economic relationship between the two African countries.
United Arab Emirates (UAE)
The UAE has continued to maintain its position as one of the major investors in the Nigerian economy, by investing $328.48 million in 2023. This was a little decrease from $281.78 million inflows recorded in the previous year.
Hong Kong
Hong Kong is another top investor in Nigerian economy despite a huge drop on the country’s investment in Nigeria from 165.34 million recorded in to 2022 to $40.74 million in 2023. This significant drop shows decreasing interest of the Asian country in the Nigerian economy.
British Virgin Islands
The British Virgin Islands investments in Nigeria increased substantially from a paltry $7.14 million investments in 2022 to $30.16 million in 2023. This marks an impressive confidence boost from the Caribbean offshore finance haven in Nigerian economy, indicating a growing bilateral relationship between the two countries.
