Shell Energy Entrepreneurs banner Yudala banner
Foreign capital flow into Nigeria drying up

By News Express on 07/05/2016

Share on facebook Yahoo mail icon Gmail icon

Views: 1,092


The flow of foreign capital into Nigeria is drying up – and it’s a huge blow to its economy.

Foreign investments into Africa’s biggest oil producer came in at $711 million in the first quarter of 2016 – a whopping 74% drop from a year before.

The steepest decline came from portfolio inflows, which dropped 85% year-over-year, according to analysts at Capital Economics.

“The collapse in investment inflows will deal two very serious blows to Nigeria’s economy, which is already reeling due to low oil prices,” warned Capital Economics’ Africa economist, John Ashbourne, in a note to clients.

“This will exacerbate the country’s serious balance of payments problems and further depress investment in an economy that is starved of capital,” he continued.

Notably, although it’s easy to point the finger at lower oil prices, that’s not the only thing souring sentiment toward Nigeria. Many investors have also been discouraged by the government's controversial policies.

Recently, the government has pursued an agenda of currency and price controls – including on petrol – which has resulted in inflation soaring to its highest rate since July 2012 and in one of the worst fuel shortages in years.

The “complex FX restrictions caused Nigeria to be ejected from a widely-tracked JPMorgan EM bond index in Q3 2015 and have deterred potential investors who worry about repatriating earnings,” added Ashbourne. “Many investors are waiting for the naira to be devalued towards something closer to the parallel market rate.”

In short, it's not looking great.

•Sourced from Business Insider. Photo shows Investment Minister, Dr. Okechukwu Enalemah.

Source News Express

Posted 07/05/2016 4:38:28 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
Sambisa trip: FG’s invitation suspicious — BBOG

Troops in hot pursuit of fleeing Boko Haram...

No going back on Computer-Based Test: JAMB

YES, TONTO DIKE SLEEPS AROUND —Nollywood star image...

11 Bayelsa governorship aspirants demand redeployment of DIG,...

NBC bans Olamide’s song ‘Don’t stop’

Osun workers sign MoU with State Govt. on...

#PanamaPapers, Social Media and Fourth Estate of the...

GE CEO steps down

‘One chance’ robbers jailed for 14 years

2017 AFCON: Nigeria walk a tight rope (Eagles...

The wisdom in Osinbajo’s decision to fight corruption...

 

Latest News Osinbajo, 9 Governors to find solution to herdsmen-farmers' crisis, killings Fire guts Imo Deputy Governor’s house Military rehabilitates 95 repentant Boko Haram fighters NNPC raises alarm over fake recruitment advert Senate institutes committee on Constitution amendment, postpones National Security Summit Enugu Revenue Board targets N30b IGR to fund 2018 budget Kaduna Govt. bans child fostering, adoption INEC seeks CJN’s intervention over conflicting court judgments Dickson tasks Bayelsa Oil Company on repositioning for optimal performance Umeh takes oath of office as Senator, calls for restructuring Angry General, Nigerian Army slug it out in court over alleged illegal retirement Alex Ekwueme to be laid to rest Feb. 2

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (315,269 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (304,996 views) Shameless Genevieve Nnaji exposes breasts in public (244,634 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (201,395 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (190,042 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (179,309 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (155,499 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (139,697 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (136,003 views) Lagos plane crash: Journalist releases victims’ names (124,449 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (121,635 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (118,935 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (33) Business (2,853) Business Verdict (32) Columnists (792) Complaints & Requests (94) Enterprise & Opportunities (200) Entertainment (431) Features (541) Global Business Monitor (222) International (1,744) Interviews (139) Live Commentary (28) Love Matters (100) News (31,990) Opinion (865) Pidgin (10) Politics (4,356) Religion (666) Sports (1,406) Stock Watch (25) AMA & Al Jazeera Global Update

 

CBN Banner advert

CBN Words on marble

 

 

Thierry Henry in Lagos Nigeria

 

APO Group Partner

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!