Nigeria’s share of the world’s inward direct investment was 0.22% ($4.4bn) in 2013 and fell to 0.11% in 2015 ($1.6bn). It has risen again to 0.22% in 2018. Several factors are responsible for this oscillating but deteriorating performance. Amongst other known constraints is the weakness in the competitive position of Nigeria as an investment destination in the last five years. The recent spike in the ease of doing business index is noteworthy and is likely to have a positive impact on future investment flows.
Oil is now trading at a 3-year high of $71.83 per barrel on the increased tensions in Syria. The higher oil revenue has been Naira supportive in the forex markets. However, as long as the US dollar remains the primary currency for global commodity trading, cartels like OPEC, and its member states, will always need to keep one eye on the strength or weakness of the greenback.
In this edition of the FDC Monthly publication, the FDC Think-Tank analyzes these issues and their implications on businesses and the economy at large.
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