The UK, USA, UAE and Others in Nigeria See Declines in Investments

The UK, USA, Republic of South Africa (RSA), Singapore, and United Arab Emirates (UAE) contributed significantly to Nigeria’s capital imports from 2019 to the first half of 2023. However, these major contributors have experienced significant declines in their investment values.

– The UK’s investments declined by 85.49% from $11 billion in 2019 to an anticipated annualized value of $1.61 billion in 2023.

– The USA witnessed an 84.4% drop, from $4.69 billion to an expected annualized amount of $734.6 million in 2023.

– RSA, Singapore, and UAE also saw declines of 80.6% each, translating to $456.2 million, $494.56 million, and $418.82 million, respectively, based on H1 2023 annualized figures.

Other contributors, such as the Netherlands and Mauritius, also experienced significant decreases in their investments.

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Several factors have contributed to this decline, including the global economic slowdown due to COVID-19, Nigeria’s challenging business environment, capital controls, budget deficits, falling oil prices, insecurity, and corruption.

However, there is hope for increased investments in 2023 if Nigeria can address these challenges and create a more favorable investment climate. US Deputy Treasury Secretary Mr. Adeyemo emphasized the importance of a stable currency and a robust macroeconomic framework in attracting foreign investment.

Despite these challenges, there are projections of increased foreign investment inflows from the USA, RSA, Singapore, UAE, and Mauritius in 2023, offering optimism for Nigeria’s economic outlook.

Foreign investment is crucial for Nigeria’s economic growth and stability, and efforts to improve the business environment and address key issues will be vital in attracting and retaining foreign investors.

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