Nigeria’s capital has fallen 80 percent in two years, according to a report by the Central Bank of Nigeria.

In particular, Nigeria’s investment in July 2019 fell from $ 17.1 billion to $ 3.4 billion in July 2021.

Central Bank reports show that Nigeria has a net worth of $ 17.1 billion between January and July 2019.

However, between January and July, 2021, the country recorded only $ 3.4 billion in capital revenue, an 80 percent decline.

In addition, capital flow will decrease from $ 8.6 billion in 2020 to $ 3.4 billion in 2021.

The figures are from CBN’s monthly economic report.

Economists and financiers cite growing security concerns, fluctuations in exchange rates, and the difficulty of repatriating foreign profits, citing the CBN’s devastating effects of the CVD-19 epidemic.

According to CBN, capital flows were $ 380 million, $ 870 million, $ 660 million and $ 110 million in January, February, March and April, and $ 290 million, $ 480 million and $ 620 million in May, June and July 2021. .

This represents a total of $ 3.4 billion for the first seven months of 2021.

Although CBN reports put the total capital flow in January and July, 2019 at $ 17.1 billion, the total capital flow between January and July, 2020 reached $ 8.6 billion.

CNN reports in part: “Comparative analysis shows that total capital flow fell sharply by 49.7% to $ 8.6bn between January and July 2020, compared to $ 17.1 billion in 2019 during the same period, according to the impact of the CVD-19 epidemic. ”

Explaining last year’s downturn, CBN said, “Capital inflows fell 13.7 percent per month, to $ 0.63 billion in July 2020, largely due to concerns from foreign investors about the epidemic. Inflation and weak economic activity.

“Revenue analysis during the review period decreased by $ 0.63bn, revenue decreased by 13.7 and 66.8%, compared to $ 0.73bn and $ 1.9bn in the previous and subsequent months, respectively.

In July 2020, foreign direct investment accounted for $ 0.06 billion, accounting for 10.3 percent of total revenues. FPI, $ 0.31bn (49.7%) and other investments in the form of loans (OI), $ 0.25bn (40.0%).

“These were under $ 0.12bn and $ 0.31bn for direct investment, and OI, respectively, is higher than the $ 0.3bn FPI recorded last month.”

Meanwhile, financial and economists attributed the growth to a number of factors, including the COVID-19 epidemic, growing insecurity, currency fluctuations and the depreciation of the naira.

Chief Economic Partnership Dr. Ayo Teririba “2019 was the peak of the economy before the outbreak. 2020 was the time of the epidemic. The ban began in March. It is understandable that the investment was made (during this time) due to the epidemic and the resulting locks because it was global.

The result was a tidal wave because oil prices had fallen and fair prices had fallen. They had to recover later. A.D. 2021 is the year after the lock. The lockout has left some damage behind, mostly due to the weakening of commodity prices.

He added: “We need to respond to the pandemic by offering new investment opportunities that are consistent with the post-COVID-19 economic realities based on oil exports, but not in the future. On top of that.

“Nigeria has to come up with investment opportunities that are commensurate with the reality of the post-epidemic and we have not done that. Investors do not come when there are no investment opportunities.

Tiriba blamed the government for not knowing how to intimidate investors.

When some of the people who are giving you that money in the Euro Bond market want to invest directly in infrastructure, you cannot announce that you are going to borrow money from the Eurobond Market. Why did you liberate some sectors? There are people who are willing to lend you money, there are people who are willing to give you shares; You have to look for opportunities for justice.

Former President of the Nigerian National Association of Accountants, Dr. Sam Nizwewe, has linked his growth to epidemics and insecurity.

He said: “The second is distrust. The third is the lack of infrastructure. Another is government policy. Investors want to see if their investment policies are clear and how sustainable they are.

Richard Borocini, former director general of the Nigerian Chartered Insurance Institute, said in a statement that the outbreak was “an increase in insecurity in the country.” This is a matter for any investor who wants to come and invest in agriculture or manufacturing.

“We have a situation where people can’t even go to their farms, some parts can’t be reached due to looting and so on. Nigeria is one of the most vulnerable countries in the world, which has prevented investors from coming.

The politics are unstable, people are not sure of the political direction because every investor who comes to the country wants to be sure of the political direction.

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