Nigeria Gets 3.84% Of SSA’s PPI Commitments In 2023

Nigeria attracted $133 million, with private investment recorded in only three projects in 2023. Out of the $3.5 billion commitments made to SSA countries, Nigeria got only about 3.84%.

This figure is far less than the $15 billion Foreign Direct Investment (FDI) commitments claimed by the Federal Minister of Information and National Orientation, Mohammed Idris.

However, it is important to note that the commitments noted by the minister may be majorly from the public sector of foreign countries and may not be focused on infrastructure development.

Various factors including economic uncertainties and a less favourable investment climate in specific countries might explain the overall decrease across the region.

The significant reduction in Nigeria’s investment, however, is particularly notable given its previously strong performance in attracting PPI.

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This year’s lower investments could reflect more profound economic challenges, regulatory uncertainties, or potentially more competitive offerings from its African peers.

In 2023, Nigeria saw a shift in foreign investment trends amid economic challenges, with a total capital importation of $3.9 billion, a noticeable decrease from the $5.3 billion recorded in the previous year.

This was also the lowest capital importation for Nigeria dating as far back as 2013 when the National Bureau of Statistics (NBS) started publishing data. For context, Nigeria attracted over $23 billion in capital importation in 2019.

This shift in investment patterns poses serious implications for Nigeria’s economic development. Already, it has been reported that given the current rate of capital expenditure, it would take approximately 300 years to bridge Nigeria’s infrastructure gap.

The country’s ability to attract and secure international finance is crucial for its ongoing and future infrastructure projects, which are essential for sustained economic growth.