Key Takeaways
- Total investments decline by 80% from Q1 to Q2 2021
- Manufacturing industry receives the most investment in first half of 2021
- Declining investment due to insecurity and other economic issues in the country
As most countries show positive figures in investments following the Covid-19 pandemic, Nigeria's economy has spiraled out of control in 2021. Authorities revealed that investments within the country dropped by 80%, from $8.42 billion to $1.2 billion from Q1 to Q2.
Despite this stark decline, the total value of investments in the country for the first half of 2021 surpassed last year's total by 98% ($5.06billion to $10.05 billion). Details of the report showed that the manufacturing industry had the highest share of investments, with around 58% of the total investment value in the country.
Construction followed with 29% on investment, and electricity rounded up the top three at 7% of the total amount invested. The breakdown of the investments was divided among the top oil-producing states, including Bayelsa, Delta, and Akwa Ibom. Popular commercial destination Lagos was also at the top five of regions with the most investments.
The report also revealed which countries contributed the most foreign investments to the country. Nigerian investors (33%) topped the list, followed surprisingly by Morocco (14%) and China (9%). The United Kingdom rounded up the top 4 with 6% of the total investments accrued in the country.
The Nigerian government has always spoken of diversifying the economy and reducing its dependence on crude oil exports as a source of revenue and foreign exchange. However the country is not seen as an attractive investment destination by global investors.
The continued security issues, poor infrastructure, fluctuating foreign exchange rates, and poor government policies have hampered past investment opportunities. This latest data shows that the government needs to adopt new financial policies and encourage the fast-growing crypto industry.
What do you think about the decline in Investment in Nigeria?
