According to reports from the Nigerian investment promotion commission, Within a 4-year span from 2017 to 2020, both foreign and local investors has agreed to inject an estimated $204 billion dollars in the Nigerian economy.
Nonetheless, only $7.8 billion has been fully injected, indicating a difference of $196 billion in terms of pledged investment from actual investment.
Mr Abubakar Yerima, Director of strategic services in Nigeria stated that in the last 4 years in terms of investment, In year 2017, investors pledged the sum of N66.35bn but only $2.41bn was actualized. In 2018, The total investment commitments was at $90.89bn while actual inflow was only $78m, indicating a shortfall of $90.11bn.
He further noted that Nigeria endured a lag in investment, experiencing a $27.6 billion funding gap between budgeted and actual investment. Total investment pledged was $29.91 billion, while actual investment was quoted at $2.31 billion within the last 4 years.
The Nigeria investment promotion commission (NICP) revealed that out of the $203.89 billion, foreign investment was valued at $150.9 billion while local investors contributed $52.9 billion.
Investment analysts explained that the torrid nature of the Nigerian business ecosystem has increased the level of risk in the economy, Which has led to a deflated investment inflow into Nigeria.
Research Analyst Damilare Ojo, elucidated the risk variables such as insecurity, fluctuating exchange rate and unstable government policies could be originators of the variation between commitments and actual investments.
Concurrently, e-OSIC has been put in motion to enhance NIPC services to current and potential investors. The agency will improve the effectiveness of entry-level processing for investment