In the latest reports, Nigeria’s Foreign Direct Investment (FDI) increased by just $435.6 Million in the second quarter of 2018. This is a record all-time low for the country (since 2007) which reached a record high of $3085 million in the fourth quarter of 2012. Meanwhile, foreign direct investment in Nigeria averaged $1280 Million from 2007 until 2018. The year 2018, heralded a steep decline with the first quarter producing $809 million which is less than the average recorded within the decade.
Foreign direct investment refers to the direct investment equity flows that in an economy. It is the sum of equity capital, reinvestment of earnings, and every other capital of a country. Direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy. Ownership of 10 percent or more of the ordinary shares of voting stock is the criterion for determining the existence of a direct investment relationship.