By Tony Obiechina, Abuja
The Nigerian Investment Promotion Commission (NIPC) attracted investments valued at US$23.30 billion into the country in 2021, the Acting Executive Secretary/Chief Executive Officer (CEO), Mr Emeka Offor has disclosed.
Mr Offor who made the disclosure at a media briefing in Abuja on Wednesday, said the figure represents about 39 percent increase in value over the US$16.74 billion investments tracked the previous year.
According to him, “the increase in value is indicative of the growing adaptation to the global ‘new normal’ after the economic disruption occasioned by the restrictions imposed to check the spread of COVID-19 pandemic. It also indicates the growing confidence of investors in the efforts to improve the national investment landscape”.
Giving the breakdown, the Executive Secretary said the top five States, by value of investments, are Lagos (US$8.7 billion); Bayelsa (US$3.6 billion), Delta (US$2.9 billion), Akwa Ibom (US$2 billion), and Adamawa (US$1 billion).
He also stated that the manufacturing sector had the highest number of projects (20) as well as the highest value, US$10.5 billion (45%). Construction (16%), electricity, gas, steam and air conditioning supply (13%), information and communication (12%), and mining and quarrying (9%) made up the top 5 sectors for the year.
On NIPC’s Strategic Plan (2022 – 2026), Mr Offor said, in setting an agenda for the Commission, “we have begun the process of developing a strategic plan with a focus on the NDP sectors. Critical to this strategy is the profiling of the opportunities in each State as well as sustaining the engagements with the sub-national governments.
“We would continue to build on past successes while we chart new paths for sustainable development of the capacity of staff of the State Investment Promotion Agencies while also stimulating healthy competition for investments across the regions and the States.
“We would leverage on our relationships with the Executive of the States to ensure sustained appreciation of the issues of the business environment with the understanding that the aggregation of the sub-national perception forms the national image, and also expand the coverage of Nigerian Investment Certification Programme for States (NICPS)”.
He pointed out that during the plan period, the Commission would aim at completing the reform process it initiated on the process and administrative framework of the Pioneer Status Incentive under the Industrial Development (Income Tax Relief) Act, adding that it will also undertake the review of the qualifying list to include emerging activities that require government support while delisting activities that are matured.
“In line with the e-government initiative, the Commission launched the e-OSIC under the Single Window Investors’ Portal (SWIP). The prevailing global business environment has made it imperative for organisations, such as us, to adopt technology as part of their operational tools.
“Consequently, we would aim at completing the 3 other modules by the end of Q3 2022 while also transiting the internal operations of the Commission into an electronic document management system”.
He further disclosed that in 2022, “it is expected that there would be some marginal upward flow in global FDI as long as the world sustains the rate of adaptation to the ‘new normal’, governments further relax the restrictions and allow a freer cross borders movement while enforcing social distancing and intensifying campaigns for vaccination coverage as well as improving therapies to bring local transmission of COVID to tolerable levels across the world.
He noted that Africa’s stock, as an investment destination, is expected to sustain its momentum in 2022, given the improving valuation of the continent, its urbanization drift, demographic structure and expected growth in intra-trade activities facilitated by the African Continental Free Trade Agreement (AfCFTA) are strong parameters that would continue to attract investors across the world.
Mr Offor who stressed that work for NIPC in the next 5 years has been appropriately defined by the National Development Plan 2021 – 2022 (NDP), said the Plan has projected a capital requirement of N348.7 trillion with 86% (N298.3 trillion) expected to be provided by the private sector.
He said, “mobilisation of this capital has become the focus of the Commission. It is in this respect that the Commission has begun the process of validating the records of the investment announcements. We expect the report from this exercise to give us a further understanding of investors’ readiness to invest in Nigeria.
” I would like to stress the need for all hands to be on deck to ensure that Nigeria attracts the quantum of investment required to stimulate sustainable socio-economic development. It is therefore very important that every Nigerian, based at home or in the diaspora develop a conscious sense of patriotism by being cautious of our statements. Let us begin to highlight the positives in the country more while pointing out the negatives for correction”, he added.
