Investors’ confidence rises 130% YoY
By Jeph Ajobaju, Chief Copy Editor
A total $8.99 billion investment announcements were made in the third quarter of 2021 (Q3 2021), a rise of 130 per cent above $3.95 billion in Q3 2020, which shows Lagos again the top choice with 81 per cent of the proposals.
The “Report of investment announcements (July-September 2021)” just released by
the Nigerian Investment Promotion Commission (NIPC) shows that the two biggest sources of investment were South Korea and South Africa.
The NIPC said it tracked 33 projects across eight states in the quarter, during which August was the most active, accounting for 64 per cent of total announcements.
The top 10 announcements accounted for 96 per cent and demonstrated improvement in the level of confidence in investing in Nigeria post-pandemic.
Share by state
Lagos received the largest proposals worth $7.29 billion (81 per cent) ring-fenced for 20 projects across manufacturing, information and communications, finance and insurance, human health and social services, and electricity.
Rivers came second with $300 million investment plans in manufacturing and transportation. Oyo received $231 million four electricity and trade (e-commerce).
Four states accounted for 87 per cent of the total investment announcements.
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Share by sector
- Manufacturing – 42 per cent)
- Electricity, gas, steam, and air conditioning supply – 25 per cent
- Information and communications – 23 per cent
- Transportation – 7 per cent
Domestic vs foreign investors
Per Nairametrics, domestic investors were the most active in Q3 2021, accounting for 47 per cent of announcements, followed by proposals from South Korea (22 per cent), South Africa (16 per cent), and Spain (6 per cent).
The NIPC said the report is based only on news articles cited in its newsletters published between July and September, and may not contain exhaustive information on all investment announcements in the quarter.
The NIPC disclosed that it did not verify the authenticity of the announcements but is tracking them as they progress to actual investments.
The report gives a sense of investors’ interest in the Nigerian economy, it added.
Share by sector (Q1-Q3 2021)
Brass Fertiliser and Petrochemical Company topped the list with $3.6 billion or 18.8 per cent of total investment in January. The fund was sourced from Nigeria, China, and Europe and channelled to Bayelsa.
Mercury Maritime Concession Company attracted $2.9 billion (15.2 per cent), sourced locally and invested in Delta.
The Nigerian National Petroleum Corporation (NNPC) received $2.5 billion in August (13.1 per cent), sourced locally and pumped into Lagos.
Egbin Power recorded $2 billion (10.5per cent), sourced from South Korea and invested in Lagos.
MTN received $1.46 billion in August, sourced from South Africa and injected into Lagos.
A total $19.1 billion has been investment in the Nigerian economy so far this year, more than $16.74 billion in full year 2020 (FY 2020).