The harsh business environment in Nigeria led to a 57.36% decline in foreign investments in the manufacturing sector, falling to N191.92 billion in Q1 2024 from N450.
11 billion in Q4 2023. Year-on-year, capital importation decreased by 25.07% compared to Q1 2023.
Despite this decline, annual data shows a steady increase in foreign investments in the sector since 2020, rising from N913.88 billion in 2020 to N1.59 trillion in 2023.
However, the share of total foreign investments in the sector dropped to 5.68% in Q1 2024 from 40.66% in 2023.
Segun Ajayi-Kadir, Director General of the Manufacturers Association of Nigeria (MAN), attributed the decline to macroeconomic instability and uncertainty, which deter new investments.
He emphasized the need for measures to improve the business environment to sustain existing investments and attract new inflows.
(VANGUARD)