By Nkiruka Nnorom

In an apparent reflection of declining investors’ interest in the Nigerian economy, the value of investment announcements in the economy in the first quarter of the year (Q1’22) fell by 69 per cent, year-on-year, YoY, to $2.58 billion from $8.41 billion in the corresponding period of 2021 (Q1’21).

The Nigerian Investment Promotion Commission (NIPC) disclosed this in its report on investment announcement for Q1’22.

The Commission explained that the sharp decline was occasioned by lingering travel restrictions associated with the global pandemic (COVID-19) and the war in Ukraine, which has destabilised European countries, a major source of investments for the country.

According to NIPC, 33 projects were tracked across five states and the Federal Capital Territory, Abuja, with more than 58 per cent of the total investment planned for Sokoto State.

The report showed that the top five states, by value of investments, are Sokoto State ($1.5 billion), Lagos State ($881 million), FCT ($58 million), Rivers State ($50 million), and Delta State ($40 million).

Further analysis of the data showed that the top five sectors are manufacturing with 45 per cent or $1.1 billion of the total planned investment; agriculture, 25 per cent or $0.64 billion; information, communication and technology, 20 per cent or $0.52 billion; transportation accounted for five per cent or $0.12 billion, while the finance and insurance accounted for four per cent.

Domestic investors were the most active during the quarter, accounting for $1.13 billion, representing 44 per cent of the announcements tracked during the period.

The other major sources were the United States of America (39%), the United Kingdom (8%), the United Arab Emirates and Austria (4%, respectively).