Nigeria’s economy attracted $2.58 billion worth of investments between January and March, 2022, a significant drop from the $8.41 billion recorded in the same period in 2021.
According to the investment announcements captured by the Nigeria Investment Promotion Council (NIPC), Nigeria recorded a sharp drop in investments in Q1 2022 as investors’ commitments declined by 226% compared with Q1 2021.
A breakdown of the three months’ announced investments shows that investors committed a total of $1.22 billion in January. In February, the value of total announced investments stood at $0.91 billion, while $0.45 was recorded in March.
According to NIPC, the $2.58 billion investments recorded in Q1 2022 were committed to a total of 33 projects across 5 States of the federation and the Federal Capital Territory (FCT).
The Manufacturing sector got the lion share of the investments as it received $1.1 billion, representing 45% of the total investments announced in the first quarter.
The agriculture sector got $0.64 billion, 25% of the total investments announced.
The Information and Communication Technology (ICT) sector was the third favourite sector for investors in Q1 as it attracted $0.52 billion, representing 20% of the total sum.
Projects in the Transportation sector attracted $0.12 billion, which is 5% of the total announced investments for the quarter, while other sectors shared $0.15 billion, representing 6%.
In terms of destinations, $105 billion, representing 41% of the total investments, went into projects in Sokoto State. Lagos State got $0.88 billion, representing 34% of the total investments, while projects in FCT and Rivers State were $0.06 billion and $0.05 billion, respectively, which is 2% apiece of the total investments. Other states shared $0.54 billion, representing 21% of the investments.
What you should know
- Global Foreign Direct Investments (FDI) has been projected to drop by 50% this year, being the worst in the last 20 years.
- The immediate past Executive Secretary of the NIPC, Yewande Sadiku, made this projection recently, adding that global FDI is expected to plummet from $1.54 trillion recorded in 2019 to $924 billion in 2020 and further slump to $831.6 billion in 2021.
- Sadiku said the downturn in the global FDI flow, occasioned by COVID-19, is not expected to record recovery earlier than 2022.