The Federal and State government have cumulatively recorded investment announcements worth $29.92bn in 2019, the Nigerian Investment Promotion Commission said.
Investment announcement is expected investments tracked by states and the federal government waiting for maturity and impact on the economy and are monitored closely by the NIPC till after their maturity to benefits.
According to the report obtained by BusinessDay from NIPC Newsletter, it showed that a total of 76 project were announced across 17 states plus Federal Capital Territory and Offshore Nigeria.
The amount is 67% less than what was tracked in 2018 (US $90.89 billion).
The huge difference may be attributed to the uncertainty around 2019 as an election year in the country, which may have contributed to the perception of the economy, and ultimately affected investors’ sentiment.
The Report showed that Lagos State had the greatest number of projects with 33 followed at a distance by Ogun with 5 and Kaduna with 3. In terms of value, US$19.8 billion (66%) worth of investments was announced to be located offshore Nigeria, US$2.6 billion (9%) in Lagos, and US$1 billion (4%) in Ondo.
Further analysis of the announcements by sector showed that the investors preferred mining & quarrying US$21.5 billion (72%), manufacturing US$3.2 billion (11%), electricity, gas & water supply US$2.3 billion (8%) and transportation & storage US$2 billion (7%).
Domestic investors were the most active, announcing 39 projects with a total worth of US$10.8 billion (36%), followed by the Netherlands, 1 project worth US$10 billion 33%), Canada, 3 projects worth US$2.4 billion (8%), Morocco, 2 projects worth US$2.1 billion (7%), Malaysia, 2 projects worth US$1 billion and Singapore announced 1 project worth US$1 billion (3%) each.
The Report is based only on investment announcements cited in NIPC’s document from January to December 2019; it may not contain exhaustive information on all investment announcements in Nigeria during the period. Nevertheless, the Report gives a sense of investors’ interest in the Nigerian economy