The Nigerian Investment Promotion Council (NIPC) reported a 66% decline in value of foreign investment announced from H1 2019 to $5.06 billion in H1 2020. This decline was mostly due to a decrease in offshore investments which made up 77% of the H1 2019 investments.

90% of the announcements were for investments in the Transportation, Information and Communication and Mining & Quarrying sectors with Kaduna state being the recipient of over 50% of the investments.

The Commission continues to send out its NIPC Intelligence Newsletter 6 days a week and tracked a total of 34 projects across 16 states, FCT and the Niger Delta Region from January to June 2020.

The top destinations during the period were: Kaduna State (US$2.61 billion), Lagos State (US$221 million), Nasarawa State (US$56 million), Ekiti State (US$50 million) and Cross River (US$15 million).

Similarly, the top 5 sectors were transportation and storage (40%), information and communication (32%), mining and quarrying (22%) finance and insurance (68%), agriculture (20%), agriculture (6%) and finance and insurance (3%).

The United States of America was the most active source of investments during the period with 43% of the announcements. The other major sources were South Africa (31%), domestic investors (16%), and the United Kingdom (8%).

NIPC’s Intelligence Newsletter culls Nigerian investment-related news from various sources. The Report is based only on investment announcements cited in NIPC’s Newsletters from January to June 2020 and it may not contain exhaustive information on all investment announcements in Nigeria during the period.

Nevertheless, the Report gives a sense of investors’ interest in the Nigerian economy. NIPC did not independently verify the authenticity of the investment announcements but is working on tracking the announcements to facilitate their progress to actual investments.

SOURCE: https://brandspurng.com/2020/07/20/nipc-records-66-decline-in-investment-announcements-h1-2020/