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Nigeria’s Economy Set To Get Fresh $9bn Investment—NIPC

Oluwasina Phillip

Investment announcements which indicate the interest of investors in the country rose to $8.99bn in the third quarter of the year, data from the Nigerian Investment Promotion Commission has revealed.

According to a report released on Tuesday by the NIPC, investment announcements grew from $1.69bn recorded in the second quarter of this year to $8.99bn in the third quarter indicating an increase of $7.21bn.

The $8.99bn investment announcements recorded in Q3 was also higher than the value of announcements in the corresponding period of the previous year.

The report showed that in Q3 2020, investment announcements stood at $3.93bn, indicating an increase of $5bn when compared to the announcements made in Q3 2021.

The figure recorded in Q3 2021 brought the total value of investment announcements, from January to September to $19.09bn.

An analysis of the announcements revealed that by source, domestic investors showed the most interest with $4.23bn or 47 per cent of total announcements, followed by South Korea with $2bn (22 per cent); South Africa $1.46bn (16 per cent); Spain $0.52bn (6 per cent) and $0.78bn (9 per cent).

Some notable domestic investors are the Nigerian National Petroleum Corporation and Dangote Sugar Refinery Plc, with commitment of $2.5bn and $1bn, respectively to the manufacturing sector in Q3 2021.

By sectors, the manufacturing sector attracted the highest investment announcements with $3.76bn or 42 percent, followed by electricity with $2.4bn (29 percent); information & communication $2.06bn (23 percent); while others recorded $28m or 3 percent.

By destination, Lagos attracted the most investment interest out of eight states which were listed, with $7.29bn or 81 per cent of total announcements.

It was followed by Rivers with $30m (3 per cent), Oyo received $23m (3 per cent), Ogun $1m or 0.1per cent while a total of $1.16bn (13 per cent) went to the other four states.

In terms of volume, NIPC said Nigeria received 33 projects across eight states in Q3 2021 compared to 14 projects across eight states and the Federal Capital Territory recorded in Q2 2021.

Further analysis of the report showed that on a monthly basis, investments announcements in Q3 comprised of $2.2bn pledged in July, $5,7bn in August and $1.4bn in September.

The NIPC is yet to release figures of actual investments recorded during the year.

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