20 Aug

Daily Watch – FDI inflows plunge from last year, CFTA to give Nigeria headaches

  • The latest investment data from the National Bureau of Statistics shows that the total investment inflows into Nigeria for the 2nd quarter took a 54 percent plunge compared with the same period last year. Total capital imported for Q2 215 was $313 million, compared to $580 million in the second quarter of 2014. However, when compared to the first quarter of 2015, the drop was only 0.2 percent. The NBS suggests that “this new, lower level will be maintained as long as an uncertain economic environment remains”.
  • Nigeria will face more competition from its African neighbours as they prepare for the Continental Free Trade Area (CFTA) scheduled to start in January 2018. The pan-African trade pact aims to increase intra-regional trade and remove tariffs on most goods traded between the 54 African countries. This zone does not include the Common External Tariff (CET) regime between Nigeria and 14 other ECOWAS countries. Analysts say Nigeria’s real sector could face shocks if it is not strengthened by the time the tariffs come into full swing.
  • Fidson Healthcare will commission a N7.5 billion drug-making plant this year. The new facility will double the company’s production capacity and will, for the first time, add intravenous fluids to the company’s product portfolio. The facility is expected to conform to the World Health Organisation (Geneva)’s Good Manufacturing Practice (WHO-GMP) standards