The U.S. Foreign Direct Investment flow into Nigeria has increased from $5.2 billion in 2000 to $8 billion dollars in 2012. The Nigeria Ambassador to the U.S, Prof. Ade Adefuye, made this known during a presentation on investment promotion strategies at the regional seminar for Heads of Missions in the Americas held in New York.
According to him, the country has also witnessed a diversification of investments from the oil and gas sector to other key non oil sectors. He identified the sectors to include Power, Energy, Agriculture, Hospitality, Housing, and Health Care among others.
The envoy said that Nigeria has witnessed a great deal of inflow of Foreign Direct Capital into Nigeria’s agricultural sector under the platform of the Nigerian/U.S Bi-National Commission (BNC) working group. Adefuye, however, quoted the minister of agriculture as saying that the six billion dollars of Foreign Direct Investment (FDI) flow into Nigeria’s agriculture was from the U.S.
He said that the BNC has injected fresh confidence into Nigerian economy to the extent that Nigeria has become a new destination for U.S. businesses and entrepreneurs. “During the past ten years, Nigeria’s economy has expanded at an annual average rate of over 6.5 percent. This is well above the South Saharan Africa’s average of 5.6 percent from 2001 to 2011. From 2009 to 2011, Nigeria has had an average growth of 7.5 percent compared to the World growth of 2.8 per cent.
“Nigeria is an emerging market and for the past decade, 2000 to 2011, Nigeria’s average growth rate has been the third fastest among the ten emerging market countries behind only China and India,” he said.
In carrying out the mandate of attracting Foreign Direct Investments into Nigeria, Adefuye, said that the Embassy has been able to use the various institutional platforms already existing between the two countries, saying that the total U.S./Nigeria trade was valued at 38.5 billion dollars in 2011, a 12 percent increase from 2010, largely due to higher oil export volumes and prices.
Adefuye also explained that the U.S. imports from Nigeria were valued at 33.7 billion dollars in 2011 and that it consisted almost entirely of crude oil. “The U.S. non oil imports from Nigeria consisted primarily of agricultural products such as cocoa, tobacco, rubber, feeds, grains and nuts,” he said.
The envoy also stated that Nigeria is currently the world’s largest importer of U.S. wheat, valued at 1.2 billion dollars in 2011. He said that other goods imported from the U.S. are vehicles valued at 1.1 billion dollars; machinery 270 million dollars; mineral fuel oil 597 million dollars and plastics estimated at 87 dollars million.