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Private Sector Invests Over N12 trillion In Nigeria's Economy.
The Nigerian economy attracted a total investment inflow of $78.27bn (N12.52tn) between 2007 and 2013, a National Bureau of Statistics report has shown.
The figure was contained in the ‘Capital Importation’ report prepared by the NBS, a copy was obtained by our correspondent on Thursday in Abuja.
According to the report, the global financial crisis, which was experienced in 2008, largely shaped capital importation over the seven year period.
The report stated that prior to the global financial crisis, the nation’s capital importation was high and rising, noting that it grew by 16.7 per cent from $9.57bn in 2007 to $11.17bn in 2008.
However, the report said at the outset of the crisis, the investment inflow recorded a sharp decline to half of the 2008 value, dropping to $5.70bn in 2009.
Some of the greatest declines, it noted, came from the banking and stock market sectors, with annual totals of $2.04bn and $1.81bn.
This, according to the report, represents 43.7 per cent and 53 per cent decline, respectively from the preceding year.
The financing and oil and gas sectors also took a large hit, declining by 69.2 per cent and 82.2 per cent, respectively, translating to a decline of over $500m in each activity in 2008.
A further analysis of the report showed that in 2010, the value of investment inflow remained depressed, increasing by a marginal 5.1 per cent to $5.9bn.
It, however, noted that a slow recovery began in 2011, as investors raised their stake by 31.8 per cent to $7.9bn, noting that the transformational upturn pushed up the country’s investment portfolio by 110.2 per cent to $16.61bn in 2012 and $21.31bn in 2013.
The $21.31bn investment inflow, according to the report, is the highest value that Nigeria has experienced in its 54 year history.
It also showed that portfolio investment in equity, bonds and money market instruments accounted for the highest amount of investment.
The report stated that out of the total $16.615bn invested in 2012, portfolio investment in equity, bonds and money market instruments accounted for $13.485bn or 81.16 per cent.
Foreign Direct Investment in equity and other capital accounted for $1.99bn or 1.19 per cent; while other investments such as trade credits, currency deposits, loans as well as other claims recorded the balance of $1.145bn.
For 2013, the report stated that out of the $21.318bn investment attracted, portfolio investments in equity, bonds and money market instruments accounted for $17.368bn or 81.47 per cent.
Similarly, the FDI in equity and other capital accounted for $2.7bn while other investments such as trade credits, currency deposits, loans as well as other claims recorded the balance of $1.243bn.
Commenting on the huge interest of investors in the Nigerian economy, the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said the country had an investment climate favourable to investors
Given an instance, Aganga said a report by the United Nations Conference on Trade and Development report ranked Nigeria as number four globally in terms of return on investment with an average return of 35 per cent, compared to a global average of about 6.6 per cent.
(Source - Public Affairs)