Economic experts claim that the fall is as a result of a variety of factors. This includes insecurity and the impending general election, among others.
According to the National Bureau of Statistics, the amount of capital imported from investors in the United Kingdom and the United States has decreased by $242.03m. UK investors contributed $1.02 billion, while US investors contributed $82. 07 billion, for a total of $1.10 billion, in the first quarter of 2022.
The total fell to $861.25 million by the second quarter, with $781. 05 million coming from UK investors and $80.02 million from US investors.
Due to investor apprehension over the liquidity on the foreign exchange market, the nation’s capital importation has been steadily declining. Hence, Hawkish policy responses, such as interest rate increases; have been prompted by the ravaging trend of inflation across major developed economies. These responses typically encourage capital repatriation from frontier economies like Nigeria while discouraging inflows of foreign capital into the local economy.