By Franca Ochigbo
With $12billion in 2007 and $20billion in 2008 Foreign Direct Investment (FDI), Nigeria is 19th in the world’s ranking and among the 20th strongest economies, the United Nations Conference, Trade and Development (UNCTAD) has said.

According to the World’s Investment Report 2009, which was released yesterday, FDI inflow is estimated to fall from $1.7 trillion in 2008 to below $1.2trillion in 2009.

Recovery is expected to be slow in 2010, reaching no more than $1.4trillion. But gather momentum in 2011 to approach $1.8trillon.

Making the disclosure yesterday in Abuja, the Chief Executive Officer (CEO) and Executive Secretary of the Nigerian Investment Promotion Commission, Alhaji Mustafa Bello, attributed the development to what he called the steady flow of investments across the world.

Bello, who spoke at a press conference on the release of the World International Report 2009, was represented by the Director of Finance and Administration, Mr. Steve Amase.

He said: "In 2007, Nigeria’s FDI was $12billion. In 2008, it went up to $20billion, mostly in oil and gas, agriculture, and manufacturing. Nigeria has hit its target of being among the 20th strong economies in the world.

"In Nigeria, the Olokoba LNG free trade zone, a consortium of BG international in partnership with Chevron and Shell, by the time the project is completed, the investment will be in the region of $500million. This is one project that has attracted huge FDI.

"The other one is the Chinese Energy company, CNOOC Ltd; they have taken up about 45% in the offshore. They purchase the offshore for about $2.3billion; they have gone ahead to take it up by $45million. This has brought in huge inflow of $3billion."

"The report presented today is being presented in four cities of the world. Nigeria is presenting its own on behalf of sub-Sahara Africa. It is intended that all the reports will be presented at the same time."

On the decline of FDI, Amase explained: "While the FDI inflows declined globally and in developed countries where the financial crisis originated, flows to developing countries and the transition economies of South-East Europe and the Commonwealth of Independence states continue to rise last year.

"For about five years, there has been steady increase in inflow of foreign direct investment across the world. Picking up to about $1.7billion in 2008, by expectation giving the economic and financial crisis the situation will not be so by 2009, it is expected that there will be a decline in the inflow to $1.2billion.

"The expectation is that by 2010, things will begin to pick up to $1.4billion, by 2011 it will swing up to $1.8billion. In developed economy because of the financial crisis there is a decline in the inflow of investment by 29%, surprisingly the story is different in developing economies. While inflow of investment has been declining in developed economy it has been increasing in developing economies, picking up to about 43%.

"In specific terms for Africa 2007, there was an increase of 63% of FDI picking up to high level of $88billion. In South East Asia, the increase has been in the figures of about 17% picking in real money terms up to $298billion. In the Latin America and the Caribbean’s the increase have been 13% in real terms up to $144billion.

"In the South and Eastern part of Europe, for consecutively six years there has been steady increase in FDI, for 2008 the increase picked up with $114billion, for West Africa 2007 FDI picked up with $16billion. By 2008-2009 records have shown that inflow into this region has reached $26billion.

"The reason for the growth in FDI is that there has been a number of new injection of funds in projects in this regions within the period under review. In Ghana, Vodafon which is a UK group moved into Ghana telecom and took up to 70% space in Ghana telecommunication company, bringing in an inflow of about $900million."

Bello said there had been some huge injection that has beefed up the investments.

In the totality of the ranking when the reports finally reach you, you will see that Nigeria has been able to attract very huge quantum of FDI that has now placed Nigeria on the position number 19 in the world ranking, having worked to improve their investment environment," he said. From The Nation Newspaper Friday 18th September 2009 Issue.

source?

strangleyo:

source?

Yea, reliable source - preferably from the "horse's mouth" (i.e. World’s Investment Report 2009)

However true this may be, I find no reason to celebrate [b]just yet [/b]when more than half of Nigerians still live in abject poverty.

It is really sad !! It is hard to celebrate, knowing the reality of life for the average individual in Nigeria,

see page 13 of 55

http://www.unctad.org/en/docs/wir2009overview_en.pdf

Kobojunkie:

It is really sad !! It is hard to celebrate, knowing the reality of life for the average individual in Nigeria,

True talk !

why not move this thread to the jokes section?

Someone, somewhere must have been quoted out of context.

Is it only the FDI that determines how strong is Nigerias economy.

i believe it due to the oil, high population, inflated real estate, and super high prices on everthing.

This is really sad. We have the 19th stongest economy in the world and our citizens are still living in abject poverty.

Which nigeria is that one?

Hmmm!!
. . .nd when did FDI become one of the indices used 2determine wch country's economy is strong or otherwise.

spoilt:

Which nigeria is that one?

i was wondering the same

TOPE2000!:

i was wondering the same

the one at the CBN.

davidylan:

the one at the CBN.

Death
let them continue to deceive themselves

Nigeria dey get money no let it fool you. the economy is surviving through its inflated prices, Nigeria isn't that bad to tell the truth.

loooooooooooooool@Spoilt and na so,

The Foreign Direct Investment does not measure the strength of a nations economy.

In any event, it is easy to see how Nigeria figures on that list. We had huge growth in the banking sector (currently smashed), the other area of direct investment was in oil exploration, drilling and sales of oil blocks (oil is currently a very unreliable indicator).

Conclusion. . . Nothing to celebrate.

From the same document:

FDI flows increased to structurally weak economies in 2008, including least developed countries (LDCs), landlocked developing
countries (LLDCs) and small island developing States (SIDS) by 29%, 54% and 32% respectively

http://www.unctad.org/en/docs/wir2009overview_en.pdf