Economic and Financial Review
Publisher
Central Bank of Nigeria
Keywords
Foreign Private Investment, Private Investment, Nigeria
Abstract
The netjlow of foreign private investment into the Nigerian economy in 1994 reduced drastically to N3,907.2 million from N32,994.4 million recorded in the preceding year. The sharp decline was attributable to the unstable business environment which resulted from political agitation and labour unrest during the review period. Contributions of all the investment flow components fell, especially changes in foreign share capital and trade and suppliers credit facilities which plummeted to N429. 5 million and N214.8 mil/ion.from N5,0ll.4 and N17,803.l million recorded in the preceding year, respectively. While investments of all the other regions declined, investment flows.from companies of Asian origin rose from N520.0 million in 1993 to Nl,415.4 million, representing 36.2 per cent of the total net inflow. The survey revealed that the cumulative level of foreign investment in the country was N70, 714. 6 million. The mining and quarrying sector accounted for the largest share of foreign investment as in the previous year. However, its proportion declined.from 41.5 per cent in 1993 to 37. 7 per cent in 1994. There were no new investments in the mining and quarrying and agriculture, forestry and fisheries sectors in 1994 as their aggregate investments remained stagnant. The review further showed that net inflows in both current and long-term liabilities fell drastically from their levels in the previous year. This development was attributed largely to the activities of companies of Western Europe origin (excluding the U.K.) in the mining and quarrying sector, which recorded net outflow of N789. 9 million through other liabilities component of investment flow in 1994, as against substantial net inflow of N2 l, 10 JJ. 3 million registered in the previous year.
Publication Title
CBN Economic and Financial Review
Issue
3
Volume
34
Recommended Citation
Central Bank of Nigeria (1996). Foreign Private Investment in Nigeria - 1994. CBN Economic and Financial Review. 34(3), 713-776.