Foreign Direct Investment (FDI) into Nigeria fell to $29.83 million in the second quarter of 2024, marking its lowest level since 2013, according to data from the National Bureau of Statistics (NBS).

This represents a 65.33% drop compared to $86.03 million during the same period in 2023, and a 74.97% decrease from $119.18 million in the previous quarter.

Economists attribute the decline to the devaluation of the naira and an unstable foreign exchange market, which saw the currency lose about 40% of its value in the first half of 2024.

Most of the FDI in Q2 2024 came from equity investments, totaling $29.82 million. “Other Capital” contributions were minimal at $0.0085 million, reflecting a further drop in this already small segment.

Despite claims of $30 billion in FDI commitments by President Bola Tinubu’s administration, the drop highlights challenges in attracting long-term investments amid economic uncertainty.

FDI made up only 1.15% of Nigeria’s total capital importation of $2.60 billion in Q2 2024, with foreign currency loans and portfolio investments dominating the inflows.

Lagos and Abuja received the bulk of foreign investments, with Lagos attracting $1.37 billion (52.52% of total inflows) and Abuja receiving $1.24 billion (47.48%).

The banking sector emerged as the largest recipient, securing $1.12 billion (43.15% of total inflows), while the manufacturing sector saw $624.71 million (23.99%).