Monday , September 26 2022
Investment Commitments Drops by 69.32% to $2.58 Billion in One Year - NIPC

Investment Commitments Drops by 69.32% to $2.58 Billion in One Year – NIPC

The Nigerian Investment Promotion Commission has disclosed in its report that investment commitments declined from $8.41bn in the first quarter of 2021 to $2.58bn within the same period in 2022.

This shows that investment commitments declined by 69.32 per cent from Q1 2021 to Q1 2022, according to the Report of Investment Commitments in Nigeria (January to March 2022) by the NIPC.

According to the report, the investment commitments in Q1 2022 cut across 33 projects and five states, alongside the Federal Capital Territory.

In this period, the manufacturing sector attracted the highest investment commitments of $1.1bn, which is 45 per cent of the total commitments. It is followed by the agriculture sector with $0.64bn, which is 25 per cent of the total commitments.

Sokoto State attracted the highest investment commitments of $1.05bn, which is 41 per cent of the total commitments. It is followed by Lagos State with $0.88bn, which 34 per cent of the entire commitments.

About $1.13bn investment commitments came from Nigerian investors, which is 44 per cent of the whole commitments.

The United States investors made $1.01bn investment commitments, which is 39 per cent of the entire commitments in Q1 2022.

The Director-General, Lagos Chamber of Commerce and Industry, Dr Chinyere Almona, in November last year, noted that policy inconsistencies and rising insecurity in Nigeria were two of the major factors driving away investors.

She said, “Some investors make pledges or applications to establish businesses or invest in Nigeria and later renege on their applications for reasons that may not be far from policy somersault, worsening insecurity between the time of announcement and real investment, and the cumbersome registration and regulatory procedures.”

She advised that the federal and state governments must take urgent steps at addressing the issues that had made the Nigerian economy too risky for investors.

The Nigerian Economic Summit Group has said that it is crucial for the Federal Government to find a sustainable solution to the issue of insecurity in the country in order to retain the interest of existing local and foreign investors and attract new ones.

This is one of the key recommendations by the group in its research titled, ‘Sectoral Development: Assessing the Conditions that drive Youth Employment in Key Sectors of the Nigerian economy’.

About Bukola Olanrewaju

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