Foreign direct investment dips by $408.28m

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The spate of insecurity in the country which had been taking its toll on the economy caused the foreign direct investment to fall by $408.28m between June and September 2019.

The Deputy Governor , Central Bank of Nigeria, Dr Okwu Nnanna, disclosed this in Lagos on Tuesday during a presentation at the sixth national economic outlook session with the theme, ‘Implication for businesses in Nigeria’, which was organised by the Chartered Institute of Bankers of Nigeria.

He said the external reserves at $38.28bn, as of January 8, 2020 were more than adequate to meet 12 months of import obligations. He also noted, “Notwithstanding the relative stability of the external sector, high import is weighing on the current account. In the short-run, supply shortages will continue to weigh on imports of food, consumer goods and machinery. Strong diaspora’s remittances are expected to be a tailwind to mitigating a potentially higher current account balance.”

While speaking on the fiscal sector performance, he said the major threat to macroeconomic stability was lack of fiscal buffer and the persistent rise in the level of unemployment.

 

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