Foreign private investment in Nigeria - 1998

Abstract

The study reviews the foreign private investment in Nigeria in 1998. It found out that the net flow of foreign private investment into the Nigerian economy increased by more than quardrupled, rising from=N5, 731.0 million in 1997 to N24,078.8 million in 1998. The liabilities to head office component of net capital inflow by companies of U. K. origin accounted for the bulk of the inflow. Central Bank of Nigeria survey revealed that the cumulative level of foreign direct investment in the country was #152, 342. 6 million. Though the shares of mining and quarrying as well as manufacturing and processing sub-sectors in cumulative foreign investment declined, they accounted for substantial proportion of investments. The debt profile of foreign investors in 1998 showed a rise in long-term liabilities while outpayments under current liabilities also increased during the period. The review further showed that cumulative paid-up capital in foreign-owned companies increased marginally during the review period, while foreign share capital decreased from 30. 6 per cent in 1997 to 30. 5 per cent. However, the share of non resident shareholders of the total foreign share capital remained at the 7. 2 per cent, the level attained in the preceding year.