Nigeria may have lost about $188.29 billion, representing more than 92 per cent of investment opportunities available to the country between 2017 and 2020.
Details of a report by the Nigerian Investment Promotion Commission (NIPC) on “Investment announcements versus FDI (Foreign Direct Investments) Inflow in Nigeria, 2017 – 2020” revealed that the actual inflows of FDI into Nigeria within the period was about 7.65 per cent of the total investment announcements captured by the Commission.
This indicates that most investment announcements and expressions of interest to invest did not materialize or translate to actual investment inflow.
The report shows that total investment announcements captured by NIPC during the period amounted to $203.89 billion whereas the actual FDI inflow was $15.6 billion, representing 7.65 per cent.
Specifically, statistics obtained from NIPC stated that in 2017, only $3.5 billion actual FDI inflow was recorded out of total investment announcements of $66.35 billion; in 2018 only $6.4 billion FDI materialised out $90.89 billion announced; in 2019, $3.3 billion out of $29.91 billion; and in 2020 only $2.4 billion actual FDI inflow was recorded out of $16.74 billion investment announcements that were captured.
NIPC noted, however, that its report is based only on investment announcements captured by the Commission which may not contain exhaustive information on all investment announcements in Nigeria during the period, adding that it did not independently verify the authenticity of the announcements.
NIPC further reported that in 2017, a total number of 112 projects were announced across 27 States and FCT; in 2018, there were 92 projects across 23 States and FCT; 2019, there were 76 Projects across 17 States, FCT; while in 2020, total announcements of 63 projects were made across 21 States, FCT and the Niger Delta region.
Further details of the NIPC report revealed that in 2020, the top 10 announcements accounted for $15.59 billion, representing about 93 per cent of total announcements.
The details show $6 billion by Indorama Petrochemicals and Fertilizer company from Singapore; $2.6 billion by Bank of China and Sinosure from China; $2 billion by 328 Support Serves GmbH from the USA; $1.6 billion by MTN South Africa; and $1.05 billion by Sinoma CBMI of China.
Others are $1 billion by Torridon Investments of UK; $600 million by African Industries Group in Nigeria; $390 million by Savannah Petroleum of UK; $200 million by Stripe from the USA; and $150 million by NESBITT Investment Nigeria.
In 2019, the top 10 announcements accounted for $26.29 billion or 88 per cent of the total. These include $10 billion by Royal Dutch Shell from the Netherlands; $5 billion by Aiteo Eastern Exploration and Production Company from Nigeria; $3.15 billion by Sterling Oil and Energy Production Company (SEEPCO) from Nigeria; $2.3 billion by TREDIC Star Core from Canada; and $1.5 billion by OCP Group from Morocco.
Others are $1 billion by Tolaram Group from Singapore; $900 million by Yinson Holdings Bhd from Malaysia; $880 million by CMES-OMS Petroleum Development Company (CPDC) from Nigeria; $860 million by China Harbour Engineering Company (CHEC)/Lagos State; and $700 million by Seplat/NNPC from Nigeria.
The top announcements in 2018 accounted for $79.3 billion, representing 87 per cent of total announcements captured by the commission.
The details include $18 billion by Range Developers of UAE; $16 billion by Total from France; $12 billion by Azikel Refinery from Nigeria; $11.7 billion by Green Africa Airways from Nigeria; and $9 billion by Royal Dutch Shell from the UK.
Others are $3.6 billion by Petrolex Oil & Gas from Nigeria; $3 billion by CNOOC from China; $2 billion by Vitol/Africa Oil/Delonex Energy from Luxembourg, Canada and Nigeria; $2 billion by General Electric from the USA; and $2 billion by Blackoil Energy Refinery from Nigeria/Niger.
The NIPC report revealed that the top 10 announcements in 2017 accounted for $43.1billion, representing about 65 per cent of total announcements captured.
The commission did not, however, provide the details of the investors, sector, source and destination.
There are issues of heightened regulatory and policy risks in many sectors.
Meanwhile, the economy is still struggling to recover from the shocks of the COVID-19 pandemic. These are the likely factors impacting investment decisions.
“It is important as well to quickly fix the ravaging insecurity in the country. All of these are crucial to boost investors’ co
