Investment inflow drops by 55% between Q1 and Q3
Investment inflow into the Nigerian economy dropped drastically by 55.1percent in the third quarter of 2018, from the $6.3billion recorded in the first quarter of the year.
The latest capital importation report released by the National Bureau of Statistics, NBS, shows that decline was worst felt in 14sectors which recorded a decline of about $3.45billion in investment inflow during the period.
Analysis of the report shows that investment inflow into the sectors declined from $6.3billion as of the end of March this year to $2.85billion.
Investment in shares was most affected, dropping by $2.12billion from $3.79billion in the first quarter to $1.67billion in the third quarter.
This is followed by the banking sector which recorded a decline of $891million from $1.18billion to $289.4million.
Investment in the agriculture sector recorded a decline from $130.9million in the first quarter to $23.3million, brewing from $1million to N0.3million, electrical from $18.66million to $5.67million, and financing from $485.41million to $371.6million.
Others are marketing from $4.27million to $3.43million, oil and gas from $85.62million to $7.73million, servicing from $328.15million to $205.91million, telecoms from $87.25million to $11.42million and trading from $27.33million to $10.29million.
However the Nigerian Investment Promotion Commission, NIPC, assures of investment commitments of about $17.88billion to be made in some states of the federation.
Executive secretary of the commission, Ms. Yewande Sadiku, said the investments are secured in 32 projects across the states of the federation.
The NIPC boss gave some of the states that had received huge investment commitments as Lagos with $3billion; Ogun, $1.04billion; Niger, $754.7million; Gombe, $315million; and Kano, $174.6million.
The NIPC boss said that the oil and gas sector, with a total investment commitment of $12.9billion, got the highest interest from investors.
The $12.9billion is about 72percent of the total investment commitments. This is followed by the services sector with $4.5billion representing 25.3percent, manufacturing with $440million or 2.5percent and agriculture with $10million.
Providing the country of destination from where these investments would come from, she said investors from the United Kingdom made a commitment to invest $9billion, Nigeria, $4.21billion, while investors from the United States pledged $2.35billion.
There is also an investment commitment of $1.2billion from Chinese investors, Switzerland $847million while other countries have a combined figure of $262million.
She said, “This figure gives us a sense, but I tell you that there are investments that may not be disclosed since investors are not really under obligation to.
“We are interested in seeing more Nigerians invest in the country, and we have a Domestic Direct Investment model now in the commission and we are working with the National Bureau of Statistics to track investments inflow into the country.”