Written by Sarah NEGEDU

CBN refutes reports on FDI decline in 2018

The Central Bank of Nigeria, CBN, has refuted media reports that suggested a decrease of over 40percent in Foreign Direct Investment inflows into the country in 2018.

The apex bank said FDI rather witnessed an increase during the financial period, as total capital inflows to Nigeria stood at $19.07billion, with FDI accounting for $7.78billion of the amount.

CBN’s Director, Corporate Communications Department, Isaac Okorafor, said while the CBN is not privy to the methodology used in arriving at the figures, available records show a significant increase in FDI in Nigeria in 2018.

Okorafor was reacting to a report on Reuters, quoting World Investment Report, 2019, recently released by UNCTAD on Foreign Direct Investment to African countries

He said, “In 2018, the total capital inflows to the country stood at $19.07billion out of which FDI accounted for $7.78billion,” he said.

Okorafor further disclosed that FDI stood at $2.87billion from January to May this year, adding that $.87billion represented 20.18% of the total capital inflow of $14.2billion into the country within the same period.

“Furthermore, total capital flows to Nigeria, from January to May 2019, stood at $14.2 billion of which FDI accounted for $2.87 billion, representing 20.18 percent of the total amount.”

According to him, Nigeria “continues to enjoy steady capital flows due to the prevailing stable macroeconomic environment and sustained investors’ confidence in the economy.

“Against this background, we wish to urge the public to take advantage of several publications by the CBN and the National Bureau of Statistics, which give adequate and accurate statistics on the subject matter.”

The CBN also refuted media reports that the Federal Government has over leveraged its overdraft position at the bank. It said the government has sufficient credit in its Treasury Single Account, TSA, at the CBN.

A separate statement signed by Director, Corporate Communications Isaac Okorafor, stated that, “when the claims of the FG on CBN are netted against the claims of the CBN on the FG, the resulting net positions indicate that the FG was actually the net creditor to CBN in 2014, 2015 and 2017 to the tune of N2.14 trillion, N1.65 trillion and N0.36 trillion, respectively.”

“On the other hand, CBN was the net creditor to the FG in 2016 and 2018 to the tune of N0.11trillion and N0.34 trillion, respectively,” he explained.

“From the foregoing and the detailed database, it is clearly inappropriate to compare the position as at end-2018 with the position as at end-2014, ignoring the movements within the period,” Okorafor stated.

He assured the investing community and the general public that the CBN remains faithful to its statutory mandate as banker and financial adviser to the Federal Government.

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