Osinbajo: Foreign portfolio investment has crashed by 86% since April 2015 – The Cable

Vice President Yemi Osinbajo says foreign portfolio investment (FPI) coming into the Nigerian economy via the capital market has declined by 85.5 percent since the first quarter of 2015.

Osinbajo, who spoke at the presidential policy dialogue organised by the Lagos Chambers of Commerce and Industry (LCCI), said foreign direct investment also took a plunge of 56 percent of from $395 million in Q1 2015 to $175million by Q1 of 2016.

He said FPI, which averaged $621 million in Q1 of 2015, had declined to $90.3 million by Q1 2016.

“Inflation is at 16.5%. Depreciation of the naira, increase in importation costs due to scarcity of FX. GDP declined from 6.3% in 2014 to 2.15% in 2015 and -0.36% in Q1 2016,” he said.

“Earnings from oil declined in the past eight months due to vandalization of pipelines and export assets in the Niger Delta. Power output fell from 5kMW in February to about 2.5k recently on account of over 60% loss in gas production due to pipeline vandalization.”

After stating the problems with the economy, Osinbajo highlighted steps the government is taking to revive it.

“In order to tackle these problems, permit me to elaborate on some of the steps taken in this regard,” Osinbajo said.

“Priority attention was given to assist the states and local govts pay the salaries of workers, which were several months in arrears. We have had three such interventions, including the latest loan of N90bn as part of a fiscal responsibility plan for states.

Read more at https://www.thecable.ng/osinbajo-foreign-portfolio-investment-crashed-86-since-april-2015