Real sector investments declined by 62% in Q1, 2020–NIPC
The latest report from the Nigeria Investment Promotion Council (NIPC) has shown that Nigeria’s real sector investment shrank by $7.89 billion or 62 per cent in the first quarter of 2020 compared to the same period of 2019.
The report titled Report of Investment Announcements, Q1 2020, revealed that the council tracked US$4.81 billion worth of investment as of first quarter of 2020 relative to the US$12.7 billion posted in the corresponding period of 2019.
“The drop in value is related to the global health epidemic that has affected global economic activities,” the NIPC said.
Foreign investors were responsible for as much as 84 per cent of total investment or $4.04 billion while indigenous investors accounted for the rest 16 per cent or $77 million.
Investors showed the greatest interest in the Transportation as well as the Information and Communication sectors, which took 42 per cent ($2.02 billion) and 33 per cent ($1.59 billion) of the total investment respectively.
The report further revealed that Mining and Quarrying accounted for 21 per cent of ($1.01 billion) while the remaining 4 per cent of ($19 million) went to agriculture.
Going by states, Kaduna was the most preferred investment hub as it received US$2.61billion worth of investment in Transportation, Mining and Quarrying, and Manufacturing sectors.
Nasarawa came next with investments valued at US$56 million for its Agriculture sector.
Lagos accounted for five investments estimated at US$29 million during the period.
The NIPC report demonstrated that the destinations of eight investments, representing 44 per cent of the investments tracked in Q1 2020, were unknown.
Revealing the sources of investments in the review period, the report says: “United States of America was the most active source of investments during the period with 42% of the announcements.
“South Africa accounted for 33%, domestic investors accounted 16% and United Kingdom announced 8% of the investments tracked,” the report said.
