Domestic and foreign investment rises by 39% in 2021 as Nigeria recovers from coronavirus meltdown

DOMESTIC and international investors increased their investments in Nigeria by a whopping 39% last year amid signs that the country is gradually recovering from the economic impact of the coronavirus pandemic according to official figures just published.

Data just released by the Nigerian Investment Promotion Commission (NIPC), shows that investment pledges from domestic and international investors accelerated by 39% in 2021. Like many other nations, as a result of the Covid-19 pandemic, Nigeria was hit hard by the global economic slowdown, leading to foreign direct investment drying up.

However, in its 2021 investment announcement report, the NIPC stated that the Nigerian economy attracted $23.3bn worth of investment in 2021. This compares with the $16.7bn recorded in 2020, according to the pool of investment decisions tracked by the government department.

Emma Offor, NIPC’s acting executive secretary, said: “The increase in value is indicative of the growing adaptation to the global new normal after the economic disruption occasioned by the restrictions imposed to check the spread of Covid-19 pandemic. It also indicates the growing confidence of investors in the efforts to improve the national investment landscape.”

NIPC noted that the year 2021 was a critical one for investors in Nigeria and globally as Africa’s largest economy recovers from the economic collapse.  Lagos, Bayelsa, Delta, Akwa Ibom and Adamawa states reported the biggest investments in value terms, attracting $8.7bn, $3.6bn, $2.9bn, $2bn and $1bn respectively.

Manufacturing shad the highest number of projects as well as the highest value of $10.5bn representing 45% of all the investment. This was followed by construction with16%, electricity, gas, steam and air conditioning supply 13%, information and communication 12% and mining and quarrying 9%.

Mr Offor explained that the investment sector will be adopting a new strategic plan for the year 2022 with a focus on profiling opportunities in each state and sustaining engagements with the sub-national governments. He said the NIPC would leverage on its relationships with the states to ensure sustained appreciation of the issues of the business environment, having an understanding of the aggregation of the sub-national perception that forms the national image.