Kogi leads in attracting investments

By Yinka Kolawole

Nigeria’s investment inflows in the third quarter of 2020 (Q3’20) has rebounded from the COVID-19 decline, posting a 1,480 percent increase to $3.95 billion from $0.25 billion in the second quarter (Q2’20).

The country had recorded a massive decline in investments in the second quarter of the year, mainly due to the impact of the global COVID-19 pandemic.

The Nigerian Investment Promotion Commission (NIPC) in its investment reports (July – September 2020), however, noted that the investments in Q3’20 represents a year-on-year (YoY) decrease of 57.48 percent when compared with $9.29 billion recorded in the corresponding period of 2019 (Q3’19).

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The report further noted that domestic investors accounted for $150 million of the investments, representing a paltry 3.8 percent.

NIPC further noted that Kogi State emerged top destination of investment in the country with $1 billion (about 25 percent), followed by Lagos State with $239 million (6 percent), Ogun State with $75 million (two percent), while Cross River State had $15 million (0.4 percent).

Investment by sector indicated that transportation received the highest investment, accounting for 66 percent ($2.60 billion); followed by manufacturing $1.08 billion; information and communication $100 million; and mining $80 million.

The report also noted that China accounted for 66 percent ($2.60 billion) of investments in Nigeria during Q3 2020.

Other major sources of investments were United Kingdom $1.10 billion, domestic investors $150 million and United States $70 million.

In terms of volume, Nigeria received 13 projects across eight states in Q3 2020, compared to 15 projects across three states including the Niger Delta region in Q2 2020 and 19 projects across 14 states including the Federal Capital Territory (FCT) in Q1’20.