Foreign Direct Investments (FDIs) to Nigerian President Tinubu’s manufacturing sector has dropped by 216.36percent to $279.51 million in Quarter 3, 2023, reports National Bureau of Statistics (NBS).
*Pix above: PBAT trying to use recent G20 Summit trip for FDI, economic drive
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Foreign Direct Investments to Nigerian President Tinubu’s manufacturing sector has dropped by 216.36percent to $279.51 million in Quarter 3, 2023, reports National Bureau of Statistics (NBS).
This represents a drop of around 216.46% when compared with the figure for the previous quarter which stood at $605.04 million.
On a year-on-year basis, FDI to the manufacturing sector declined by 71.2% from $392.54 recorded in Q3, 2022 to its figure in the quarter under review.
Revealing this during the week, the National Bureau of Statistics, NBS in its Q3 Foreign Capital Importation report, the bureau said, however, that in the first nine months of 2023, the manufacturing sector received around $1.14 billion in foreign capital.
This represents an increase of $415.82 million when compared to the $724.75 million received in the same period of 2022.
It is important to note that the decline in foreign capital is not unique to the manufacturing sector but to the general economy in Q3.
Total capital importation for Q3 stood at $654.65 million which represents a drop of 36.45% when compared to the figure recorded in Q2 ($1.03 billion).
Every year, foreign capital declined by 43.55% from the $1.16 billion recorded in the same quarter of 2022.
Real reasons for decline in foreign capital import to the manufacturing sector
The manufacturing sector in the past few years has been faced with a series of problems that have curtailed its growth. These problems include; rising foreign exchange rates, high energy costs occasioned by epileptic power supply, multiple taxation, inflation, etc.
A review of the performance of some manufacturing firms listed on the NGX reveals that 8 companies recorded a foreign exchange loss of -N129.811 billion while only three of these companies recorded a foreign exchange gain of just N3.49 billion. This coupled with the difficulty of multinationals in the manufacturing space to repatriate cash has resulted in notable exits in recent times.
A one-time Minister of Finance as well as Trade and Investment, Mr. Olusegun Aganga, stated in a lecture that Nigeria has been deindustrializing since 2015 due to the reduction in the contribution of the manufacturing sector to the economy.
In Q3, 2023, particularly, the contribution of the manufacturing sector to GDP dropped to 8.42% from the 8.62% growth rate recorded in Q2, 2023.This despite efforts of President Tinubu to use G20 Summit trip for FDI, economic drive./PLEASE SHARE
- Tags: NBS, )PBAT
