BusinessDayOnline: Foreign investments in Nigeria, Africa’s second largest economy, reached a record N800 billion ($5.2 bn) in January 2013 as prominent corporations from the United States of America, Canada, The Netherlands and Turkey increased their investment stakes in the country, in a pace never seen before.

The scale of the net inflows, about 207 percent growth above what flowed in the same period last year, highlights the revival in investor confidence in Nigeria’s economic reforms.

The Central Bank of Nigeria’s (CBN) figures for Q3, 2012, showed a total of $1.4 billion was injected into the economy through Foreign Direct Investments (FDI) while $4.6 billion came in through portfolio investments, with another $4.7 billion invested in the capital market, a far cry from what flowed in this year.

The current inflows and investment commitments with different gestation periods, focus on infrastructure development, construction of power plants for the enhancement of electricity generation, mining, healthcare, agriculture and agro-allied sectors of the Nigerian economy, areas where there have been concerted efforts to turn things around.

The investments into these sectors in the month, reflected positively also in the capital market, as investors (local and foreign) saw need to key into the opportunities in the Nigerian equities, which achieved a four-year high last weekend.

The response is underscored by the International Finance Corporation (IFC) $50 million Naira-denominated bond issued in the period.

Having been endorsed by the Investment Supervision Department of the National Pension Commission (PENCOM), the IFC’s investment in the country has surged to $1.1 billion, which is the largest portfolio in Africa and eighth-largest globally.

“The rally underscores the rising confidence in the country as a project and buy-in by investors who easily smell good deals,” analysts told BusinessDay weekend.

BusinessDay Research and Intelligence Unit (BRIU) analysed the future effect on the value chain.

“New companies will emerge to service the investments and existing companies will upgrade skills. Hubs are forming as the investments are spread across the country. There will be new jobs and job requirements and there will be spill-over to local suppliers as well.”

General Electric, the leading global player in turbine technology, signed a memorandum of understanding with the Federal Government of Nigeria to invest about $1 billion (N157bn) in the next five years in manufacturing, assembly and training, in a firm located in Calabar, Cross River State. Initial investment will be $250 million and it is expected to rise to $1 billion over the duration of the agreement.

Other deals sealed by GE last month include the $500 million 450 megawatts Geometric Power Plant in Abia State, as well as with Transcorp plc, in order to increase power generation to 650 megawatts at Ughelli Power Plant in Delta State. Tony Elumelu, chairman of Trancorp Plc and Jeff Immelt, global chairman and CEO, GE graced the occasion when the deal was signed.

In another development, the African Finance Corporation (AFC) and FMO of The Netherlands (Entrepreneurial Development Bank) reached an accord to promote project development facility in the country. “The Facility will make early stage investments in projects under development, pre-financial close, in the infrastructure sector across sub-Saharan Africa.

The $15 million facility will fund early-stage equity investments in projects under development by AFC, and third party developers, including those referred to the Facility by FMO. The Facility will be managed by AFC and will typically fund technical advisory services and third party expenses”, information obtained from the official website of FMO revealed.

The month of January 2013 also witnessed the injection of $800 million (N126 bn) by the African Development Bank (AfDB) into the Nigerian economy. The breakdown shows that Eleme Fertilizer and Chemical Company got $100 million while the Bank of Industry (BoI) and Nigerian Export-Import Bank (NEXIM) received $700 million. The former loan is meant to boost fertilizer production, just as the latter will enhance the capacity of BoI and NEXIM to promote non-oil export.

Many other firms and financial institutions yet to berth, are fast queuing. One such, is the Nigeria-Canadian Bi-National Commission (NCBNC) which announced that Canadian firms are interested in the country’s mining activities, rail, road, aviation, as well as in agriculture, even as they recognized the need to encourage investment in Information and Communications. Consequently, they have promised to increase their trade with Nigeria up to $6 billion by 2015.

Samsung is looking to build a manufacturing plant in the country.

Back home, the FG has set aside $400 million for the trans-Saharan gas pipeline. With specific focus on the Calabar-Ajaokota-Kano pipeline, the speedy completion of this pipeline will enhance the operation of the Trans-Saharan Gas Pipeline Project. Also, Stanbic IBTC and Keystone Bank will provide N5.6 billion for the Agbekoya (Farmers Association) in order to boost food production and processing.

In addition, Standard Chartered Private Equity and Ashmore acquired a stake in GZI which is an aluminum manufacturing plant based in Ogun State. Similarly, Florence Nightingale Group, one of Turkey’s best healthcare providers, will invest about $100 million in healthcare service delivery before the end of Q1, 2013.

http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/51056-investors-bet-on-nigeria-with-n800bn-sealed-deals-in-jan

Some people seem to have faith in Nigeria.

/inb4ITisALLliesANDstories.

Wonderful.....but when will all this wealth reflect on the citizens?

liberty300: Wonderful.....but when will all this wealth reflect on the citizens?

It takes time son! only if its tru.
Hairs dint grow around ur puberty area overnight! Did it? So that's how this works.

liberty300: Wonderful.....but when will all this wealth reflect on the citizens?

So, you wanna tell me it isnt reflecting on any Nigerian?
Bro, there is money in this country. All you need is the right connection. Leave that Bush and that your comfort zone and go out and fight for whats YOURS....

Get inspired, visit
www.inspired.com.ng
for your daily inspirational dose!

liberty300: Wonderful.....but when will all this wealth reflect on the citizens?

keep staying indoors..ode!

I cant just fanthom d reason why d MODS didnt consider this thread for FP; I just cant undastad it!! I wud hv missd it, as will very many persons; just look at d sorts of tins highlightd by dis article and happening in OUR country of recent... When will it feel like this forum puts on d Appearance of bn BALANCE and FAIR regardless of d personal views of d Mods. Its just a PITY

Ok o.... Last time they say its 14% increase, now it is 207% increase.
No pOr.n intended**** I am still waiting for the investors to start showing up.

I don't expect the opposition rascals and habitual GEJ bashers to recognise that this remarkable achievement represents a validation and vindication of GEJ's efforts to boost the economy. The rascals are too busy trying to find their way out of the labyrinth of lies they have constructed in their futile attempts to undermine GEJ's personality and government. Shame on them.

From the days of Obasanjo till nigh! Investors have always poured money into Nigeria for One thing : They know the government is weak, the law cannot be enforced, so they come in with $1m but leave with $150million.. at the expense of the citizens who are getting poorer. Go check your facts and see how much has been poured into Lekki Free trade zone...then you would have to ask yourself.... where has all the money gone? EXPLOITATION is the word..

Omo_Tier1: From the days of Obasanjo till nigh! Investors have always poured money into Nigeria for One thing : They know the government is weak, the law cannot be enforced, so they come in with $1m but leave with $150million.. at the expense of the citizens who are getting poorer. Go check your facts and see how much has been poured into Lekki Free trade zone...then you would have to ask yourself.... where has all the money gone? EXPLOITATION is the word..

Cud you plz do every sane person a favour wheneva you do not hv a clue what to say: SHUT tha helll up. Its not compulsory to mk comments, you know... Thnks

Omo_Tier1: From the days of Obasanjo till nigh! Investors have always poured money into Nigeria for One thing : They know the government is weak, the law cannot be enforced, so they come in with $1m but leave with $150million.. at the expense of the citizens who are getting poorer. Go check your facts and see how much has been poured into Lekki Free trade zone...then you would have to ask yourself.... where has all the money gone? EXPLOITATION is the word..

All in an effort to bash where there is none . . .Lolz . . . . . This attempt is glaringly too lame . . . .

Jobless growth, faceless investors, clueless president. Which is better?

Prof Corruption: Jobless growth, faceless investors, clueless president. Which is better?

See dis one!! The results are just starting to come out and you are already going crazy; beta leave d shore now that you hv d time, else...

No news here. Nigeria is an investor haven, with its size and large middle market. Investors who are only realizing this may be late on the money. But we can do much better. Structural reforms are needed, then much else will follow...

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orgasticdance: No news here. Nigeria is an investor haven, with its size and large middle market.

Sorry. It IS NEWS. And it is VERY IMPORTANT NEWS. I think you meant ''large middle class'', to which I'll add, ''fast growing''. According to Actis International investment firm, 10 million Nigerians moved up to middle class in the last 5 years.

http://tradeflow21.com/2011/02/11/around-10-million-nigerians-moved-into-the-middle-income-bracket-in-the-past-5-years/

Why do you think there is unprecedented demand for ultra-modern shopping malls and all sorts of fancy eateries, with KFC and Dominos and other investors trooping in? Home grown ICT businesses, even international law firms and insurance firms are setting up offices in Lagos, as the construction boom escalates. There's a lot going on. The way to get rich in Nigeria today is to start a service that caters to the fast expanding middle class.