By Jeph Ajobaju, Chief Copy Editor
Bayelsa pinched first and Lagos came fourth as investment destinations in the first quarter of 2021 (Q1 2021), a rare lag by Lagos famed for business and pleasure but a sign perhaps of investors on the prowl for gain untapped elsewhere in Nigeria.
Overall investments in Africa’s largest economy rose 75 per cent from $4.81 billion in Q1 2020 to $8.41 billion in Q1 2021, according to the latest data released by the Nigerian Investment Promotion Commission (NIPC).
This also shows an increase of 8.38 per cent compared to investments in Q4 2020 which stood at $7.76 billion.
Top four sectors
The top four investment sectors in Q1 2021 were real estate, power, manufacturing, and agriculture which received a total $8.35 billion worth of investments.
Back in Q1 2020, transportation had topped the list with 42 per cent of total investments, followed by information and communication (33 per cent), mining and quarrying (21 per cent), and agriculture (4 per cent).
But in Q1 2021, manufacturing received 60 per cent of total investments ($5.08 billion), trailed by construction ($2.90 billion), electricity ($0.26 billion), and agriculture ($0.11 billion).
Major investors
The federal government was the major source of investments in Q1 2021, accounting for 35 per cent ($2.95 billion), unlike Q1 2020 when the United States led with 42 per cent of investment announcements in Nigeria.
In Q1 2021, South Africa accounted for 33 per cent, domestic investors (16 per cent), Morocco ($1.40 billion), the United Kingdom ($0.24 billion), and the US ($0.08 billion).
In Q1 2020, Nigeria received 15 projects across eight states but in Q1 2021 the number rose to 19 projects in 14 states including the Federal Capital Territory (FCT).
The NIPC had disclosed in February that total collated investment announcements for 2020 amounted to $16.74 billion, down from $29.91 billion in 2019.
Total announcements for 2020 involved 63 projects in 21 states and the FCT. Lagos led the pack with 24 projects, the NIPC said.
It attributed the surge in investments in Q1 2021 to the gradual return of investors’ confidence globally after a decline forced by the COVID-19 pandemic.
How Bayelsa beat Lagos
Bayelsa received the largest share of investment with $3.6 billion in mining and quarrying.
Delta came second with $2.94 billion in seaport construction and power transmission, followed by Akwa Ibom with $1.4 billion announced in mining and quarrying.
Lagos ranked fourth with $0.26 billion in finance, insurance, and manufacturing.
The leading four destinations accounted for 97 per cent of total investments announced in Q1 2021 against 56 per cent in Q1 2020.