By Felix Khanoba
The Nigerian Investment Promotion Commission (NIPC) says it tracked about 23.30 billion dollars worth of potential investments in the country in 2021, with Lagos, Bayelsa and Delta states attracting the largest share.
Acting Executive Secretary of NIPC, Emeka Offor, who disclosed this at a media parley on Wednesday in Abuja, said the 23.30 billion dollars was 39 per cent more than the value tracked in 2020 (16.74 billion dollars).
“The 2021 Investments Announcement Report indicated that US$23.30 billion was tracked during the year, representing about 39 per cent more than the value tracked in 2020 (US$16.74 billion).
“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.”
According to him, the top 5 states, by the value of investments, are Lagos State (US$8.7 billion), Bayelsa State (US$3.6 billion), Delta State (US$2.9 billion), Akwa Ibom State (US$2 billion), and Adamawa State (US$1 billion).
“The manufacturing sector had the highest number of projects (20) as well as the highest value, US$10.5 billion (45%). Construction (16 per cent), electricity, gas, steam and air conditioning supply (13 per cent), information and communication (12%), and mining and quarrying (9 per cent) made up the top 5 sectors for the year.”
Offor, however, said NIPC has begun the process of validating investment announcement records to ascertain the figure that materialised into actual investments in 2021.
Speaking further, the NIPC boss revealed that the Commission had put a mechanism in place to mobilise over N298.3 trillion capital from the private sector to make up the N348.7 trillion needed fund for the National Development Plan (NDP).
“The work for NIPC in the next five years has been appropriately defined by the National Development Plan 2021 – 2022 (NDP). The Plan has projected a capital requirement of N348.7 trillion with 86 per cent (N298.3 trillion) expected to be provided by the private sector.
“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,” he stated.
Offor further explained that according to NIPC’s Strategic Plan from 2022 – 2026, validation of the records will give the Commission direction towards a global drive on investment in Nigeria.
The Acting Executive Secretary also revealed that the Federal Government is considering the review of the Pioneer Status Incentive (PDI) under the Industrial Development (Income Tax Relief) Act in order to attract more investors to the country.
The AUTHORITY reports that PSI is an incentive from the Federal Government which exempts companies from basic income tax.
This means the companies with pioneer status do not have to pay tax for a certain period of time allowing the company to get established. This tax exemption can be full or partial.
The products or companies suitable for this pioneer status are industries or products that do not already exist in the country; the existing industries do not meet the required needs or fulfill expected goals; and any industry or product for which there is a favorable prospect of development.
