This reflects a decline of 73.79% versus the same period last year. Nigeria, Africa’s top oil exporter is going through its worst economic crisis in years, caused by low crude prices which have led to currency controls being imposed by the central bank.
Nigeria has seen an exodus of foreign money in the last few months. In September, JP Morgan announced it would eject the country from its influential emerging markets bond index because of the currency controls. Barclays followed suit soon after.
“Investors may be concerned about whether or not they will be able to repatriate the earnings from their investments, given the current controls on the exchange rate,” the statistics office said.
“In addition, as growth has slowed in recent quarters, there may be concerns about the profitability of such investments.”
A foreign exchange shortage has seen the naira drop to record lows on the parallel market in recent months. But the central bank has resisted calls from the International Monetary Fund to ease the restrictions, a stance supported by President Muhammadu Buhari.
Contributing Source: Reuters