Nigeria recorded only $2.58 billion in its investment announcements from local and foreign companies in the first quarter (Q1) of 2022, the lowest investment commitment recorded in the Q1 of every year since 2018. This was noted in the latest Report of Investment Announcement in Nigeria by the Nigeria Investment Promotion Commission (NIPC).
The Report of Investment Announcement in Nigeria is published each quarter of every year by the NIPC.
In Q1 this year, the country recorded investment announcements worth only $2.58 billion. This is a 69.32% decrease from the $8.41 billion recorded in the corresponding period in 2021.
The highest investment announcement the country recorded in the first quarter for the period under review was in 2018. In 2019, it dropped to $12.71 billion. A further drop was recorded the following year, then an increase in Q1 2021.
Of the $2.58 billion investment announcement in Q1 this year, Nigerian investors accounted for 44% ($1.13 billion). The second largest investment came from the United State of America (USA) – $1.01 billion (39%).
The United Kingdom (UK) and United Arab Emirates (UAE) followed with 8% ($0.21 billion) and 4% ($0.11bn), respectively. Collectively, other countries accounted for the remaining 0.12bn (5%).
The investments recorded in Q1 cut across 33 projects in 5 states and the Federal Capital Territory (FCT). Sokoto state received the highest share of the investment announcements – $1.05 billion. Lagos came second place with $0.88 billion.
The FCT and Rivers state received $0.06 billion and $0.05 billion, respectively. The other 2 states received $0.54 billion.
In Q1 2021, Lagos state received only $0.26bn out of the $8.41 billion investment announcements. Bayelsa, Delta, and Akwa Ibom topped the list of states that received the largest share of the investment announcements in Q1 2021. However, in 2022 these states were not among the top states.
By sector, the manufacturing sector recorded the highest investment commitments – 43.5% ($1.1 billion) of the total investment announcements in 2022 maintaining the top spot it held in Q1 2021, 60% of total investments.
The agriculture sector came second with $0.64 billion in investments, representing 25.3% of total investment announcements in Q1 this year.
The Information and Communications (ICT) and transportation sectors got 20.6% and 4.7% respectively. Then other sectors received 5.9%.