New investments slash YoY
By Jeph Ajobaju, Chief Copy Editor
Investment announcements in the first quarter of the year ended March (Q1 2022) dropped 69 per cent year-on-year (YoY) to $2.58 billion from $8.41 billion in Q1 2021, says the Nigerian Investment Promotion Commission (NIPC).
The NIPC explained in its newly released report on investment announcements for Q1 2022 that the sharp decline was caused by travel restrictions compelled by the global pandemic.
It also cited the war in Ukraine which broke out in February this year and has destabilised European countries, major sources of investment in Nigeria.
The NIPC said 33 projects were tracked across five states and the Federal Capital Territory (FCT), Abuja, with more than 58 per cent of total investments planned for Sokoto.
Top five states
The top five states by value of investment announcements are
- Sokoto – $1.5 billion
- Lagos – $881 million
- FCT – $58 million
- Rivers – $50 million
- Delta – $40 million
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Top five sectors
The top five sectors by value of investment announcements are
- Manufacturing – $1.1 billion (45 per cent of total)
- Agriculture – $0.64 billion (25 per cent)
- Fnformation, communication and technology – $0.52 billion (20 per cent)
- Transportation – or $0.12 billion (4 per cent)
- Finance and insurance – 4 per cent
Domestic investors were the most active in Q1 2022, accounting for $1.13 billion, representing 44 per cent of total announcements, according to the NIPC, per reporting by Nairametrics.
The other major sources were
- United States – 39 per cent
- United Kingdom – 8 per cent
- United Arab Emirates – 4 per cent
- Austria – 4 per cent
Nigeria attracted $23b investment announcements in 2021
The NIPC announced in February this year that it recorded $23.3 billion investment announcements in 2021.
Lagos topped the list of states with $8.7 billion, followed by Bayelsa ($3.6 billion), Delta ($2.9 billion), Akwa Ibom ($2 billion), and Adamawa ($1 billion).
“The 2021 Investments Announcement Report indicated that US$23.30 billion was tracked during the year, representing about 39% more than the value tracked in 2020 (US$16.74 billion),” acting NIPC Executive Secretary Emeka Offor said.
“The increase in value is indicative of the growing adaptation to the global ‘new normal’ after the economic disruption occasioned by the restrictions imposed to check the spread of COVID-19 pandemic.
“It also indicates the growing confidence of investors in the efforts to improve the national investment landscape.”