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Loans Lead in Capital Inflow into Nigeria in 2022

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Dollars reserve

CEM REPORT, FINANCE | Capital Inflows into the Nigerian economy between January and November 2022, dipped by 12.3%. This implies that Nigeria’s capital importation fell to the sum of $4.89 billion in the review period when compared to $5.89 billion recorded in the corresponding period of 2021.

This is according to data from the Central Bank of Nigeria (CBN).

A breakdown of the data reveals that foreign portfolio investment (FDI) accounted for most of the capital imported into Nigeria at 49%.


However, this is a decline of 25.8% to $2.4 billion when compared to $3.24 billion recorded in the same period of 2021.

Furthermore, $1.97 billion came into the country in form of loans, accounting for 40.2% of the total capital inflows in the review period.

This is an increase of 26.8% from the $1.55 billion recorded in the corresponding period of 2021.

Also, foreign direct investment (FDI) declined by 27.4% year-on-year to $421.64 million, accounting for 8.6% of the capital imported.

According to the Central Bank of Nigeria (CBN), capital inflows into the Nigerian economy have been slow in recent years following the COVID-19 pandemic in 2020 and other economic pitfalls.

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A critical examination of the CBN’s data indicates that capital inflows into the country have been on a steady decline since 2019.

Capital inflow fell from $23.71 billion in 2019 to $9.68 billion in 2020. The numbers dwindled further in 2021, attracting only $6.7 billion, its lowest in 5 years. 2022 numbers appear set to fall further.

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