A total of $3.1 billion wads imorted into Nigeria in the first six months of 2022,with the banking sector accounting for 47.42 per cent or $1.47 billion of the amount.
The manufacturing sector trailed from a distant, accounting with a mere 14.84 per cent or$457.7 million, while the financial sector followed, accounting for 12.90 per cent or $396.7 million.
The $1.47 billion capital inflows in the first half of 2022, represent an increase of 109.8 per cent, as against the $698.2 million received in the second half of last year and 46.5 per cent higher than the $1 billion inflows recorded in the corresponding period of 2021.
Most of the $3.11 billion in capital imported into the Nigerian economy as foreign inflows between January and June 2022, were in form of foreign portfolio investments. In contrast to the first half of last year, foreign inflows grew by 11.8%, however, when compared to the second half of 2021, it declined by 20.7%.
Capital inflows into the country recorded a significant decline in the second half of 2020, following the covid-19 pandemic, which triggered a downturn in the global economy, with investors wary of moving their monies to the African giant. However, since the second half of 2021 inflows have begun to pick up, albeit still very low compared to pre-pandemic levels.
Consequently, the inability to grow export earnings from oil export and the non-remittance of proceeds by the NNPC to the apex bank has caused the foreign reserve to fall further from the $40 billion threshold, currently standing at $38.9 billion.
Highlight of Nigeria’s foreign inflow
