By Henry Uche
The Nigerian Investment Promotion Commission (NIPC) has reported that US$16.74 billion was tracked as investment announcements for the year 2020. From its investment intelligence newsletter, this amount is 44% less than the value tracked in 2019 which stood at $29.91 billion.
The report said the drop in value could be attributed to the economic impact brought about by COVID-19 pandemic, which disrupted not only Nigerian economy but global value chains and capital flows. A similar downward trend is expected for actual investments recorded in Nigeria and globally.
In its Intelligence Newsletter, NIPC stated that it tracked a total of 63 projects across 21 States and the Federal Capital Territory during the year. Twenty- four (24) of the projects were planned for Lagos State, followed by Kaduna and Ekiti States with 5 projects each.
In terms of value, the top 5 States are: Rivers State with US$6 billion; Kaduna State with US$2.8 billion; Kogi State with US$1 billion; Lagos State with US$0.89 billion; and Ogun State with US$0.08 billion.
The data further showed that the manufacturing sector had the highest number of projects (10) as well as the highest value, which stood at US$8.4 billion (50%). Transportation and storage had (28%), information and communication had (11%), mining and quarrying had (6%), while finance and insurance (3%) made up the top 5 sectors for the year.
Singapore accounted for 36% of the projects announcements tracked during the period. Other major sources were China (22%); United States of America (15%); South Africa (10%); United Kingdom (9%) and domestic investors (8%).
This report is inexhaustive on all investment announcements in Nigeria during the period. Nevertheless, it gives a sense of investors’ interest in the Nigerian economy for planning, decision making and policy design across board.