Comparing Foreign Direct Investment In Nigeria Under Jonathan, Buhari
 |
| Buhari |
 |
| Jonathan |
As you are read this, President
Muhammadu Buhari is warming up to travel to United Kingdom for an
anti-corruption summit holding on Wednesday, May 11, 2016.
If you ask any of his media aides,
Malam Garba Shehu, or Mr Femi Adesina, they will tell you as always that the
president’s frequent travels is to reconcile Nigeria with the international
community. They will tell you that Nigeria was a corrupt and pariah nation under
Jonathan, as such the new president is reconnecting Nigeria back to the
international community and attract foreign investment for the country. That is
a lie from the pit of hell. Nigeria was not a pariah nation under President
Goodluck Jonathan. While we agree that there was corruption in Nigeria under
Jonathan, as in this administration, Jonathan attracted more foreign investment
than any other administration in Nigeria’s history. Indeed Nigeria is losing
fast foreign investment garnered under Jonathan in the last one year despite
all the foreign travels by Buhari to attract investments.
Below are the facts and figures to
support my position and sources for further reading:
In 2013, under Jonathan, for the
first time in Nigeria’s history, the country beat South Africa as the number
one Foreign Direct Investment (FDI) destination in Africa, as compiled by
United Nations agency, United
Nations Conference on Trade and Development (UNCTD).
Details Of Media Reports On Foreign Investments Under
‘Corrupt’ Jonathan
Nigeria Is Top FDI Destination In Africa- African
Business March 2012 edition.
Nigeria has become the number-one
destination for foreign direct investment, overtaking South Africa for the
first time in a decade. This year alone, high-level delegations from north
America have pledged vast sums to bring the country’s energy sector up to
speed. Frederick Mordi reports
from Lagos.
Foreign investors have been
coming to Nigeria in droves from all over the world over the last few years and
they have taken advantage of the current congenial business environment created
by the government to step up their volume of investments.
In January alone, foreign direct
investment (FDI) inflow into Nigeria was estimated at $5.2bn (N800bn). There
are indications that this figure will continue to rise. According to the 2012 World
Investment Report, prepared by the Geneva-based United Nations Conference
on Trade and Development (Unctad), Nigeria emerged as the Africa’s biggest
destination for FDI in Africa in 2011, with $8.92bn, up from $6.10bn recorded
in 2010. Unctad ranked South Africa next with $5.81bn, while Ghana ($3.22bn);
Congo, ($2.93bn); and Algeria, ($2.57bn) trailed behind in that order during
the period under review. The report ranked these countries as the top five
African FDI destinations, based on the volume of FDI they received.
(See African Business March 2012
edition).
Nigeria Still Top Investment
Destination In Africa, UNCTAD
For the second time in two years,
Nigeria has retained its position as Africa’s number one destination for
Foreign Direct Investment, according to the global FDI report released by the
United Nations Conference on Trade and Development on Wednesday.
This, however, is despite the
fact that FDI inflows into the country actually fell from $8.9bn in 2011 to
$7bn last year.
Specifically, the UNCTAD World
Investment Report 2013 subtitled: ‘Global value chains: Investment and trade
for development, disclosed that Nigeria recorded FDI inflows of $7.03bn in 2012
to beat other African countries.
FDI into South Africa stood at
$4.572bn; Ghana, $3.295bn; Egypt, $2.798bn; and Angola, $-6.898bn, among others.
Source:
http://pr-primus-ng.com/index.php/en/newss/87-information/104-investment-in-nigeria
FDI: Nigeria Still Among Top Three In Africa Despite Challenges-BusinessDay
Nigeria
remains one of the top three destinations for foreign direct investments (FDI)
in Africa, despite current challenges, the United Nations Conference on Trade
and Development (UNCTAD) has said. UNCTAD said this just as the United Nations
Industrial Development Organisation (UNIDO) gave its nod, in Vienna, on
Wednesday, for the establishment of an Investment and…
Source: http://businessdayonline.com/2014/06/fdi-nigeria-still-among-top-three-in-africa-despite-challenges/
Foreign Investment Under ‘Corruption
Free’ Buhari
Nigeria’s Flow Of Foreign Investments
Drops By 74%-By Nation
The flow of foreign capital into Nigeria is drying up,
and it’s a huge blow to its economy.
Foreign investments came in at $711 million in the
first quarter of 2016 — a whopping 74% drop from a year before.
The steepest decline came from portfolio inflows,
which dropped 85% year-over-year, according to analysts at Capital Economics.
“The collapse in investment inflows will deal two
very serious blows to Nigeria’s economy, which is already reeling due to low
oil prices,” warned Capital Economics’ Africa economist, John Ashbourne,
in a note to clients.
“This will exacerbate the country’s serious balance of
payments problems and further depress investment in an economy that is starved
of capital,” he continued.
Notably, although it’s easy to point the finger at
lower oil prices, that’s not the only thing souring sentiment towards Nigeria.
Many investors have also been discouraged by the government’s controversial
policies.
Recently, the government has pursued an agenda of
currency and price controls — including on petrol — which has resulted in
inflation soaring to its highest rate since July 2012 and in one of the
worst fuel shortages in years.
The “complex FX restrictions caused Nigeria to be
ejected from a widely-tracked JPMorgan EM bond index in Q3 2015 and have
deterred potential investors who worry about repatriating earnings,”
added Ashbourne. ”Many investors are waiting for the naira to be
devalued towards something closer to the parallel market rate.”
In short, it’s not looking great.
Investors Lose Interest In Nigeria As JPMorgan Cuts
Bonds - Bloomberg
JPMorgan Chase & Co.’s
decision to exclude Nigeria from its local-currency emerging-market bond
indexes tops a year of pain for a nation reeling from a collapse in oil prices,
slowing growth and a lack of economic leadership.
Nigeria
has gone almost full circle from a favored investor destination in Africa three
years ago -- because of its status as the continent’s largest crude producer
and most populous nation -- to being rebuffed.
Nigeria has gone almost full
circle from a favored investor destination in Africa three years ago -- because
of its status as the continent’s largest crude producer and most populous
nation -- to being rebuffed. While most of the weakening sentiment is due to
the more than halving in oil prices since last year, a series of missteps by
the central bank and President Muhammadu Buhari’s delay in appointing an
economic team are adding to the slide.
The JPMorgan news is “a clear signal
of dampened investor sentiment,” Manji Cheto, vice president of Teneo
Intelligence in London, said by phone on Wednesday. “For things to turn around
so quickly in three years’ time shows how important it is for governments to
recognize that market sentiment is so fickle, and I don’t think the Nigerian
government ever really understood this.”
Comments
Post a Comment