Though Nigeria’s economy recorded a significant rise in foreign capital importation year-on-year (YoY) by 60 per cent to $610 million in January 2022, against the $380 million in January 2021, the rate of capital outflow from the economy increased massively by 163 per cent to $290 million in January 2022, from $110 million in January 2021.
However, the data released by the Central Bank of Nigeria, CBN, in its Economic Report for January 2022, which contained these figures also shows that portfolio investment (mainly money market instruments) rose massively YoY by 390 per cent to $400 million, from $10 million in January 2021.
Other investments (mainly loans) declined YoY by 43 per cent to $170 million in January from $290 million in January 2021.
Foreign Direct Investment (FDI) fell YoY by 33 per cent to $40 million, from $60 million in January 2021.
On month-on-month the capital inflow was down by 45 percent against the $1.11 billion recorded in December 2021
CBN attributed the decline to tighter global financial conditions, driven by anticipated hikes in Fed’s fund rates.
