The latest report released by the Nigerian Investment Promotion Commission (NIPC) has revealed that 12 states in Nigeria received investment worth $15 billion in the first half of 2019.
According to the NIPC report, a total of 43 projects across 12 states and Federal Capital Territory (FCT) were approved by investors in 20 countries.
The states included those in Niger Delta region, Ondo, Lagos and FCT.
Meanwhile, investments recorded in the first half of 2019 were 67% less in value than the corresponding period of 2018.
According to the Commission, the decline in investment in half-year 2019 was probably due to investors’ sentiment which was dampened because of the general elections and the official handover in the first half of 2019.
Investments’ Breakdown: The report further showed that the highest investment inflow was from the Netherlands and it accounted for 66% by value. This was followed by Morocco (14%) and Nigeria (9%).
- The major destinations were Niger-Delta region (77%), Ondo (7%), and Lagos State (4%).
- By sectors, the mining and quarrying sectors accounted for 81%, manufacturing 14% while insurance took 2%.
- The major investors during the period include Royal Dutch Shell Plc with an investment in crude exploration worth $10 billion
- Moroccan OCP Group with a plan to build an ammonia plant in three states made an investment’s commitment worth $1.5 billion.
Similarly, it was revealed that the joint venture contract between Nigerian Oil Company and Malaysian partners (First Exploration and Petroleum Development Company Limited for crude oil exploration) at the Anyala and Madu oil fields boosted an investment value of $901.79 million.
The Bottom line: Basically, investors’ interest in an economy can be measured by the amount of investment received across the various sectors. While the decline in investment was traceable to uncertainties in the political atmosphere, it is expected that the second half improves across these states just as investors’ confidence get better.