- Nigeria Rated Africa’s 19th Most Attractive Investment Destination
Nigeria is the 19th most attractive economy for investments flowing into the African continent, a new report has indicated.
The Africa Investment Index 2016 report showed that Nigeria attracted a net Foreign Direct Investment of $3.1bn in 2015.
According to the index, African investment destinations attracted an overall FDI of US $13.6bn.
Botswana was ranked the most attractive economy for investments flowing into the African continent followed by Morocco, Egypt, South Africa and Zambia.
The report was released by Quantum Global’s independent research arm, Quantum Global Research Lab.
Commenting on the report, the Head, Quantum Global Research Lab, Prof. Mthuli Ncube, said, “Despite the current economic challenges, we are quite confident on the medium to long-term market prospects. Nigeria has earmarked a significant amount of capital to develop critical infrastructure in the country and there are various opportunities for public private collaboration providing investors’ returns on their investments.
“We anticipate that investment in infrastructure will underpin the growth of the economy and meet the needs of a large Nigerian growth population.”
Following the decline in oil prices, which impacted various African oil producing nations, the Federal Government has intensified its effort towards diversifying the economy and has laid out a road map to enhance public infrastructure and support high-growth sectors in the country such as manufacturing, ICT, agriculture, among others.
This is aimed at meeting local demand along with boosting exports globally in the short-to medium term to stabilise the macro-economy.
Nigeria, the biggest economy in Africa with a gross domestic product of $415bn, is projected to grow to about $595bn by 2020.
According to the index, this presents a big market for goods and services. In this sector, the GDP per capita currently at 2,260 is projected to leap to $2, 907 by 2020, which could boost consumption and domestic demand.
Remarking on Nigeria’s economy, Ncube further said, “The short to medium-term focus of the Federal Government is to reduce imports and address primary sector blockages, such as roads, bridges, power, railway, aviation, water, housing, agriculture, education and health. Despite the current market volatility, Nigeria presents tremendous investment opportunities in these areas, which would not only support the local economy but also deliver significant yields to foreign investors.”
The Federal Government has implemented various reforms to boost and restructure the economy including the introduction of the Nigeria Industrial Revolution Plan, establishing the Enabling Business Environment Council to make Nigeria more attractive for investments, and the microcredit scheme in the 2016 budget, which will see the Bank of Industry, overseeing the disbursement of loans to 1.6 million traders, artists, farmers and young entrepreneurs over the next 12 months.
Fall in Economic Activities in Nigeria Created N485.51 Billion Fiscal Deficit in January -CBN
The drop in economic activities in Africa’s largest economy Nigeria led to a N485.51 billion fiscal deficit in January, according to the latest data from the Central Bank of Nigeria (CBN).
In the monthly economic report released on Friday by the apex bank, the weak revenue performance in January 2021 was due to the decline in non-oil receipts following the lingering negative effects of COVID-19 pandemic on business activities and the resultant shortfall in tax revenues.
In part, the report read, “Federally collected revenue in January 2021 was N807.54bn.
“This was 4.6 per cent below the provisional budget benchmark and 12.8 per cent lower than the collection in the corresponding period of 2020.
“Oil and non-oil revenue constituted 45.4 per cent and 54.6 per cent of the total collection respectively. The modest rebound in crude oil prices in the preceding three months enhanced the contribution of oil revenue to total revenue, relative to the budget benchmark.
“Non-oil revenue sources underperformed, owing to the shortfalls in collections from VAT, corporate tax, and FGN independent revenue sources.
“Retained revenue of the Federal Government of Nigeria was lower-than-trend due to the lingering effects of the COVID-19 pandemic.”
“At N285.26bn, FGN’s retained revenue fell short of its programmed benchmark and collections in January 2020, by 41.3 per cent and 7.5 per cent respectively.
“In contrast, the provisional aggregate expenditure of the FGN rose from N717.6bn in December 2020 to N770.77bn in the reporting period, but remained 14.4 per cent below the monthly target of N900.88bn.
“Fiscal operations of the FGN in January 2021 resulted in a tentative overall deficit of N485.51bn.”
The report noted that Nigeria’s total public debt stood at N28.03 trillion as of the end-September 2020, with domestic and external debts accounting for 56.5 percent and 43.5 percent, respectively.
NNPC Supplies 1.44 Billion Litres of Petrol in January 2021
The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.
The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.
NNPC said the 1.44 billion litres translate to 46.30 million litres per day.
Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).
The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.
Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.
For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.
Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.
Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.
NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021
The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.
This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).
The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.
It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.
NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.
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