Banking sector, others suffer as investment inflows decline by N1tn
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Banking sector, others suffer as investment inflows decline by N1tn

- The National Bureau of Statistics has said that there was a decline in investment inflow across major economic sectors in 2018

- The bureau, in its report, said banking and other sectors suffered in investment drop of not less than N1trillion

- It attributed the saddening development to the instability of economy and high loan interest on businesses

The National Bureau of Statistics (NBS), in its quarterly report, said not less than 14 sectors of the economy suffered a decline of about $3.45 billion, approximately N1.05 trillion, in investment inflow between the first and third quarter of 2018.

In a report available in The Punch, the share dropped from $6.3 billion in March 2018 to $2.85 billion, with the banking sector suffering a decline of $891 million from $1.18 billionn to $289.4 million.

Legit.ng gathers from the report, which was available on NBS website, that the agriculture sector suffered a investment decline from $130.9 million in the first quarter to $23.3 million, brewing from $1 million to N0.3 million.

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Other economic sector, that suffered an investment drops include electrical ( from $18.66 million to $5.67 million), financing (from $485.41 million to $371.6 million), marketing (from $4.27 million to $3.43 million), oil and gas (from $85.62 million to $7.73 million) servicing (from $328.15 million to $205.91 million), telecoms (from $87.25 million to $11.42 million) and trading (from $27.33 million to $10.29 million).

Reacting to the situation, the registrar of Institute of Finance and Control of Nigeria (IFCN), Godwin Eohoi, attributed the development to the instability of economy, adding that poor infrastructure across the country and high interest rate were the reason for the investment drop.

He called on the government to fashion out new policies that will make business investment fascinating.

In his words, the executive secretary of Nigerian Investment Promotion Commission (NIPC), Yewande Sadiku, assured that government is working on an investment commitment of $17.88 billion in some states across the federation.

According to her, states like Lagos, Ogun, Niger, Gombe, and Kano have received $3 billion, $1.04 billion, $754.7 million, $315 million, and, $174.6 million respectively from 32 projects across the country.

Sadiku also noted that there is also an investment commitment of $1.2 billion from Chinese investors, Switzerland $847 million while other countries have a combined figure of $262 million, adding that more investments are still coming in.

She said: "This figure gives us a sense, but I tell you that there are investments that may not be disclosed since investors are not really under obligation to.

“We are interested in seeing more Nigerians invest in the country, and we have a domestic direct investment model now in the commission and we are working with the National Bureau of Statistics to track investments inflow into the country.”

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Meanwhile, Legit.ng previously reported that National Bureau of Statistics (NBS) had revealed that debts incurred by Nigeria had risen to $22.08 billionn and N15.63 trillion, respectively at the end of the second quarter of this year.

The bureau report that despite the enviable economic value of Lagos state, it had the largest share of the foreign and local debts among the 36 states in the country coupled with that of Federal Capital Territory (FCT), Abuja.

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Source: Legit

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