Investments value into 12 states declines by 67%
Motolani Oseni
Investments value received by 12 states in Nigeria has declined by 67 per cent, when compared the $15 billion investment worth that was recorded in the first half of 2019, to the figure achieved during the corresponding period of 2018, the latest report released by the Nigerian Investment Promotion Commission (NIPC) revealed.
The NIPC report showed that a total of 43 projects across 12 states and Federal Capital Territory (FCT) was approved by investors in 20 countries.
The states included those in the Niger Delta region, Ondo, Lagos and FCT.
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 per cent by value. This was followed by Morocco 66 per cent and Nigeria 9 per cent.
The major destinations were Niger-Delta region 77 per cent, Ondo 7 per cent, and Lagos State 4 per cent.
By sectors, the mining and quarrying sectors accounted for 81 per cent, manufacturing 14 per cent while insurance took 2 per cent.
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.
