The Nigerian Investment Promotion Commission (NIPC) said it tracked $16.74 billion investment announcements in Nigeria for the year 2020, representing 44 percent less than the $29.91 billion tracked in 2019.
NIPC disclosed this in its newsletter released yesterday, noting that the manufacturing sector attracted the most investment of $8.4 billion, representing 50 percent of the total investment, as well as the highest number of projects (10).
The Commission however noted that the report is not exhaustive of 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 the board,” it added.
“The manufacturing sector had the highest number of projects (10) as well as the highest value, which stood at $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 five sectors for the year,” NIPC stated.
The report said that the drop in value could be attributed to the economic impact brought about by COVID-19 pandemic, which disrupted not only the Nigerian economy but the global value chains and capital flows.
It stated that a similar downward trend is expected for actual investments recorded in Nigeria and globally.
The NIPC further stated that it tracked 63 projects across 21 states and the Federal Capital Territory during the year. Twenty- four of the projects were planned for Lagos State, followed by Kaduna and Ekiti states with five projects each.
In terms of value, the top five states are: Rivers State with $6 billion; Kaduna State with $2.8 billion; Kogi State with $1 billion; Lagos State with $0.89 billion; and Ogun State with $0.08 billion.
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%).