Business

IMF Lists Reasons For Nigeria, Others, Low FDI

Published

2 years ago

April 16, 2023

The International Monetary Fund says the recent slowdown witnessed in Foreign Direct Investment, especially in developing countries can be linked to the divergent trade patterns among countries, with flows increasingly concentrated among geopolitically aligned countries, particularly in strategic sectors.

It said the new development would affect emerging markets and developing economies given their reliance on FDI from geopolitically distant countries.

In its ‘World Economic Outlook: A Rocky Recovery report, the Washington-based lender said rising geopolitical tensions such as Brexit, trade tensions between the United States and China, and Russia’s invasion of Ukraine posed a challenge to international relations and could lead to a policy-driven reversal of global economic integration.

According to the IMF, foreign direct investment is cross-border investment through which foreign investors establish a stable and long-lasting influence over domestic enterprises.

The PUNCH reports that a decrease in FDI has been particularly visible, with global FDI declining from 3.3 per cent of GDP in the 2000s to 1.3 per cent between 2018 and 2022

Foreign inflows into Nigeria have fallen drastically over the years with inflows falling by 77.79 per cent from $23.99bn in 2019 to $5.33bn in 2022.

The IMF report partly read, “The recent slowdown in FDI has been characterized by divergent patterns across host countries, with flows increasingly concentrated among geopolitically aligned countries, particularly in strategic sectors. Several emerging markets and developing economies are highly vulnerable to FDI relocation, given their reliance on FDI from geopolitically distant countries.

“While a range of factors has contributed to this protracted phase, the fragmentation of capital flows along geopolitical fault lines and the potential emergence of regional geopolitical blocs are novel elements that could have large negative spillovers to the global economy.

“Firms and policymakers are increasingly looking at strategies for moving production processes to trusted countries with aligned political preferences to make supply chains less vulnerable to geopolitical tensions.”

Speaking on solutions, the fund advised that multilateral efforts aimed at preserving global integration are the best way to reduce the large and widespread economic costs of FDI fragmentation.

“Some countries could reduce their vulnerability by promoting private sector development, while others could take advantage of the diversion of investment flows to attract new FDI by undertaking structural reforms and improving infrastructure,” it said.

Business

Dangote Refinery Reduces Fuel Price

Published

5 hours ago

August 12, 2025

Editor

Dangote Petroleum Refinery has announced a reduction in the ex-depot (gantry) price of Premium Motor Spirit, PMS, commonly known as petrol, by N30, from N850 to N820 per litre, effective from August 12, 2025.

This was disclosed in a statement by the company’s spokesman, Anthony Chijiena, on Tuesday.

The 650,000-barrel-per-day plant said the move is part of its unwavering commitment to national development, assuring the public of a consistent and uninterrupted supply of petroleum products.

Business

Indian Refiners Abandon Russia For Nigerian Crude, As Dangote Refinery Relies On US

Published

1 day ago

August 11, 2025

Editor

India Refineries have abandoned Russian crude for Nigerian crude, while domestic refiner Dangote Refinery relies heavily on West Texas Intermediate crude from the United States of America.

This followed a recent sanction threat by US president Donald Trump on India over continued patronage of Russian crude.

According to Reuters, industry sources said that Indian Oil Corporation recently bought one million barrels of Nigeria’s Agbami crude for September 2025 delivery in a tender awarded to global trader Trafigura.

Also included are one million barrels of Angola Girassol, one million barrels of US Mars, three million barrels of Abu Dhabi Murban, and two million barrels of Nigerian oil, according to Reuters.

The report noted that the purchase is part of a broader sourcing spree that has seen Indian refiners secure millions of barrels from non-Russian sources post July 2025.

Meanwhile, Indian refiners secured purchases of Nigerian crude grades; the $20bn Dangote Petroleum Refinery in Ibeju-Lekki, Lagos, is relying on around 60 percent on US and other imoorts to feed its processing units.

Data showed that the refinery imported an average of 10 million barrels in July 2025, saying it was increasingly relying on the US for its feedstock despite the naira-for-crude deal with the Federal Government, which kicked off in October last year.

According to Reuters, the Indian Oil Corp and Bharat Petroleum have bought a million barrels of non-Russian crude billed for delivery in September and October after the US pressured India to halt purchases from Russia.

Business

NNPCL Increases Fuel Price

Published

1 week ago

August 5, 2025

Editor

The Nigerian National Petroleum Company Limited, NNPCL, has increased the pump price of premium motor spirit across its retail outlets.

It was gathered that NNPCL retail outlets in Abuja have adjusted their fuel pump price to N955 per litre from N890.

This is the case in NNPCL retail outlets along Kubwa Expressway, Wuse and other parts of Abuja.

Similarly, the pump price hike has been implemented at filling stations in Kogi and Nasarawa.

This means that the petrol pump price was increased by N65.

This comes after independent petroleum product marketers and filling station owners in Abuja increased petrol pump prices to between N950 and N971 per litre at the weekend. Their decision followed an upward review of the ex-depot petrol price by Dangote Refinery to N858 per litre, up from N820.