Foreign capital imported to Nigeria declined by 32% from US$5.6 billion to US$3.8 billion between Q3 and Q4 2019, indicating a decline for the third consecutive quarter1. The decline during the period was driven by a fall in two components of foreign capital imports as portfolio investment and other investment declined by 37.7% and 30.5% respectively, while foreign direct investment increased by 24.5%. In 2019, the United Kingdom, the United States, and South Africa emerged as the top-three countries importing the highest capital while Lagos and Abuja remain the top destinations within the country. By sector, banking (31.92%), financing (26.18%) and shares (22.24%) emerge as the top sectors. Despite the decline in capital imports between Q3 and Q4 2019, there has been a 42.7% increase in the total value of capital imported between 2018 and 2019. Taking into consideration the impact of the COVID-19 pandemic on the global economy due to the decline in demand and widespread uncertainty, a further decline in foreign capital inflows is expected going forward.
March 30, 2020
Nigeria Economic Update (Issue 11)
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Monetary Policy Rate
Monetary Policy Rate: The fluctuations in MPR reflect CBNs intermittent effort to promote growth, stymie inflation or incentivize capital flows. Particularly, the rise in MPR in 2016Q1 was effort to
An Analysis Of The Nigerian Economic Growth And Recovery Plan
This Paper examines the response of the Nigerian government to the ongoing recession in
the domestic economy, particularly in the context of the recently released Economic
Recovery and Growth Plan (ERGP) for 2017-2020. It also provides an analysis of
key questions regarding the suitability, achievability, and prospect of the
ERGP. The second section of the brief runs through the state of the Nigerian
economy with a focus on the cause and drivers of the ongoing recession. The
third section reviews the objectives, implementation strategy, and expected
outcomes of the ERGP over the medium-term. The fourth section weighs on the
potentials of the ERGP by analyzing some pertinent questions: Is the proposed
recovery plan and policies well-targeted to address prevailing economic crises
in Nigerian economy?