United States’ companies in Nigeria created over 3 million jobs in one year, the latest Economic Impact Survey released by the American Business Council (ABC) revealed.
According to the Economic Impact Survey, 3 million indirect jobs were created in 2018, while 18,000 direct jobs were created in the same year, up from the 9,000 in 2017.
The survey analysed the economic effect of U.S companies on the Nigerian economy and measures changes in business revenue, foreign investments, job creation, gross value added and plans for expansion.
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Revenue Generated, Job creation and Investments in Nigeria
According to ABC’s economic impact survey, U.S companies impact the Nigeria economy in 2018 through gross value added to the nation’s economic output, investments, jobs and communities.
- In 2018, U.S companies in Nigeria generated a whopping sum of N1.4 trillion in revenue.
- Breakdown in the survey shows that U.S companies in Nigeria spent over N2.8 billion investments to expand operation in the last five years. Also, over N2.8 billion is planned to be invested in the next three years.
- In terms of foreign direct investment inflows, U.S companies attracted $1.19 FDI inflow in 2018.
- Also, the sum of N1.6 billion was spent on training in 2018.
U.S companies spend N1.9 billion on CSR
On Corporate Social Responsibilities (CSR), U.S companies in Nigeria spent N1.9 billion in 2018, up from N1.5 billion spent in 2017. A further breakdown shows that recent CRS projects carried out for selected companies/locations include:
- Electrification of 1.2km road in Ogu community in Rivers State and construction of a School Library in Ogu Government Technical College.
- Cervical Cancer Screening Program in Ile-Ife
- A developmental programme which uses chess to improve strategic and critical thinking amongst secondary school student in Lagos State.
- Planted over 1,000 trees to reduce erosion, and trained over 250 farmers on better maize and tomato growing practices
- Development Centre for IDPs in North East educational and health facilities in Akwa Ibom.
On the other hand, over 66% of U.S companies identified Nigeria as a regional hub for their operations in West Africa. Also, 63.2% of the US companies have a local content target, and this is reflected in areas such as products, people and supply chains.
While analysing factors affecting businesses in Nigeria, ABC revealed that the major factors include specific industry regulations, general policy regulation, Taxation and Crime and Security.