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Tag: Foreign Districts Market

FDIs drop as ‘hot money’ dominates Nigeria’s $5.85bn imported capital in Q1

FDIs drop as ‘hot money’ dominates Nigeria’s $5.85bn imported capital in Q1

Capital Market
Nigeria’s ability to attract sustainable foreign direct investments (FDIs) remained weak, as the bulk of imported capital continues to be dominated by portfolio investments, otherwise known as ‘hot money’. With oil prices remaining unstable, there are concerns about the quality of investment attracted into the economy, especially when investors are becoming jittery about the stability of the Naira, and the country’s capacity to service its debts. Of the $5.85billion received in the first quarter (Q1) of 2020, portfolio investment accounted for 73.61% ($4.31billion) of the total capital importation recorded by the National Bureau of Statistics (NBS). Indeed, Nigeria received $5.85billion capital importation in Q1 2020 against $8.51billion in Q1 2019. According to...