What Are The Most Significant Sources Of Foreign Money Transfers To Nigeria?

Expatriates send money to Nigeria is the most significant source of international money transfer to the country. After Egypt and Ethiopia, Nigeria is Africa’s third-largest FDI recipient. The country is one of Africa’s most exciting growth poles, attracting a slew of investors in the hydrocarbon, energy, and construction sectors, among others. The effects of the oil counter-shock are felt throughout the world.

FDI flows to Nigeria totalled USD 3,3 billion in 2019, down 48.5% from the previous year (USD 6,4 billion in 2018) due to the impact of austerity measures, according to the UNCTAD 2020 World Investment Report. In 2019, the total stock of FDI was estimated to be USD 98,6 billion. The United States, China, the United Kingdom, the Netherlands and France are among the most influential investors in Nigeria, and money transfer to Nigeria for investment is increasing every year.

What Are The Major Sectors & Advantages And Investors Of Investment In Nigeria?

Nigeria wants to diversify its economy away from oil by developing a competitive manufacturing sector that will enable it to better integrate into global value chains and increase productivity. Nigeria is Africa’s consequently FDI recipient, after Egypt and Ethiopia. The country is one of Africa’s most excellent investment poles, attracting a slew of entrepreneurs in sectors such as hydrocarbons, oil, and construction, among others. The repercussions of the oil counter-shock can be felt all over the world. A largely privatised economy, a favourable taxation regime, abundant natural resources, online money transfer to Nigeria for investment in the local business by foreign workers, and a low labour cost are only a few of the country’s key advantages.

What Is Importance Of Foreign Direct Investment To The Economy Of Developing Country?

The significance of foreign direct investment (FDI) in terms of national growth. It is a driving force behind economic development. Foreign direct investment (FDI) is a component of one of the significant factors of production that deals with the capital flight into a particular country. When all other factors are equal, such capital inflows always result in a rise in the money supply. The increased money supply is linked to increased national growth, more job opportunities, and a more favourable balance of payments. Given this context, it isn’t easy to overstate the value of the foreign direct investment.  Apart from foreign direct investment, Nigerians working abroad send money to Nigeria online is also a significant factor for development and investment in the country.