By Jeph Ajobaju, Chief Copy Editor
Bayelsa attracted $3.6 billion investment in the first quarter of 2021 (Q1 2021), beating to fourth place Nigeria’s richest state, Lagos, which got $0.26 billion.
But Lagos ripostes that it has garnered $26.07 billion investment in the past two years alone, flaunting its ability to attract, retain, and leverage growth that makes it the fifth largest economy in Africa.
Lagos received 74 per cent of total foreign investment in Nigeria in 2019 and 86 per cent in 2020, says Solape Hammond, Sustainable Development Goals and Investment Adviser to Governor Babajide Sanwo-Olu.
However, data released by the Nigerian Investment Promotion Commission (NIPC) for Q1 2021 shows that 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.
Lagos seeks to improve business climate
A breakdown of the $26.07 billion investment Lagos attracted shows that $17.75 billion landed in 2019, which represented 74 per cent of total capital inflows into the country, and $8.32 billion in 2020 (86 per cent).
Hammond said the economic policy of the state government is designed to improve the business climate of Lagos and promote socio-economic prosperity.
Alausa, through the Office of Sustainable Development Goals and Investment (OSDGI), has in the past two years participated in several global campaigns to attract investments and partnerships for projects related to the Sustainable Development Goals of the United Nations, she added.
Hammond confirmed that Lagos is engaging local and international organisations for investment possibilities and has supported more than 12 private sector investors interested in the state.
Her words: “Other strategies and efforts undertaken to promote sustainable investment in Lagos include the strategic partnerships with development agencies comprising the International Finance Corporation (IFC), Africa Development Bank (AfDB), World Bank and the French Development Agency (AFD).’’
The OSDGI plans a “One-Stop-Shop” to improve the ease of doing business for investors and also facilitate the process of granting approval for lands, buildings, and taxes by all agencies involved in business startups.
Hammond disclosed that the OSDGI, in collaboration with the UN Development Programme (UNDP), launched the Conditional Cash Transfer Project in vulnerable communities to provide resilience, livelihood, and short term employment.
More than 2,103 Medium-Sized and Small-Scale Enterprise (MSME) owners have received ‘Unconditional Cash Transfer’ and 951 people were paid ‘Cash for Work’ to carry out environmental sanitation and hygiene for three months, according to her.
Investments nationwide
Overall investments in Nigeria’s economy rose 75 per cent from $4.81 billion in Q1 2020 to $8.41 billion in Q1 2021, according to the NIPC.
This 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 pandemic.