80% of Nigeria’s Foreign Capital Inflows Are Short-Term, Economy “Still Vulnerable” – CPPE

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LagosPolice

LagosPolice

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Oct 14, 2020
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Nigeria experienced a surge in foreign capital importation, but a new analysis suggests that 80% of these inflows are short-term portfolio investments, which could make the economy vulnerable to sudden shifts in sentiment.

While capital imports rose sharply due to improved FX conditions and policy reforms, analysts caution that long-term productive investments are still lagging.

This pattern highlights the importance of structural reforms to support deeper economic resilience.
 
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