From Babajide Okeowo
Foreign investments to Nigeria from January to June 2019 dropped to $15bn from $45bn recorded in the corresponding period in 2018. This amounts to a whopping $30bn loss in foreign investments.
This loss, according to a report released by the Nigerian Investment Promotion Commission, NIPC on investment announcements for the first half of 2019 probably stemmed from uncertainty surrounding the 2019 General Election.
The report reads in part, “In the period, $15.15bn of announcements were tracked through the NIPC. The report showed that a total of 43 projects across 12 states and Federal Capital Territory, FCT was announced from investors in 20 countries while on the other hand $45. 73bn investment was recorded from 42 Projects across 9 States and the FCT in 2018. Comparatively, the announcements made in the first half of 2019 were 67 percent less in value than the announcements in the same period of 2018. This was probably due to many investors waiting for the conclusion of national elections and handover in the first half of 2019” the report stated.
The major announcements were from Royal Dutch Shell Plc with US$10 billion in crude exploration, Moroccan OCP Group’s plan to build a US$1.5 billion ammonia plant in 3 states and the joint venture contract between Malaysian partners and Nigerian oil company.
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According to NIPC records, mining and quarrying recorded investment announcements of $12.3bn, reflecting 81 percent of the total investment proposals made.
Manufacturing recorded $2.2bn worth of investment proposals announced.
Within the period under review, finance and insurance recorded $200m investment proposals while information and communication recorded $200m.
“The major destination was the Niger-Delta region with 77 percent, followed by Ondo State at seven percent, and Lagos State at four percent of the value announced.”
The records showed further that Morocco recorded investments commitments of $2.1bn while Nigerian local investors made investment commitments of $1.3bn.
It added that investors from Malaysia made investment commitments of $0.9bn, while other unnamed nations cumulatively made investment commitments of $3.5bn.
Investments commitments are made by would-be investors in specific sectors of the economy, which the NIPC follows up to ensure its full maturity and benefits to the economy.
