The National Bureau of Statistics (NBS) capital importation report for 2023 Q1 revealed that foreign investments in the manufacturing sector decreased by 35%, from $392.5 million in the fourth quarter of 2022 to $256 million in the first.
The overall amount of capital imported into Nigeria, according to the study, was $1.1 billion in the first quarter of 2023, down from the US$1.5 billion reported in the same period the previous year, a fall of 28%.
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Despite the decline, the production sector saw the second-largest inflow of capital, accounting for 22% of all investments, while the banking sector saw the biggest inflow, amounting to $304.5 million, or 26.89% of all capital imported in Q1 2023.
In recent months, the Manufacturers Association of Nigeria had warned that the increasingly harsh business environment, occasioned by high energy costs, lack of access to funding, multiple taxation, among others, had scaled down investments into the sector.
According to the Manufacturers Association of Nigeria Bi-Annual Economic Review, investment in the manufacturing sector dipped to N145.59bn in the second half of 2022, in comparison to N160.88bn in the corresponding half of 2021, representing a decline of N15.29bn or 10 per cent.
It further declined by N32.8bn or 18 per cent when compared with N178.39bn recorded in the first half of the year. Manufacturing investment totalled N323.98bn in 2022 as against N305.02bn recorded in 2021.
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