In furtherance to its mandate, the Nigerian Investment Promotion Commission (NIPC) presents the report on investment announcements for the Q3 of 2019. In the period, US$9.29 billion of announcements were tracked through the NIPC Intelligence Newsletters, which are issued 6 days a week.
The report showed that a total of 13 projects across 4 states and offshore Nigeria were announced by investors in 4 countries.
The major announcements were made by Aiteo Eastern Exploration and Production Company which plans to invest US$5 billion in crude exploration; Sterling Oil Exploration and Energy Production Company Limited (SEEPCO) in joint a venture project of US$3.15 billion with the Nigerian National Petroleum Corporation (NNPC) for the development of Oil Mining Lease (OML) 13; CMES-OMS Petroleum Development Company (CPDC) also in a joint venture project with NNPC to the tune of $875.75 million for the funding, provision of technical services and alternative financing for the development of OML 65; and Datasonic Group Berhard, a Malaysian Group investing in the information and communication infrastructure to the tune of US$100 million.
Announcements from Nigerian companies accounted for 98% by value, and these investments were mainly in the development of oil fields. This shows the growing capacity of Nigerian companies in the oil and gas sector of the economy.
In a similar vein, mining & quarrying sector accounted for 98%, while information and communications, finance & insurance, transportation & storage, real estate, human health & social services, manufacturing and agriculture collectively accounted for the balance of 2%. The major destination was the Niger-Delta region with 87%, while Lagos, Kaduna, Anambra and Ogun states accounted for less than 1%. The other destinations were not made public by the investors.
NIPC’s Intelligence Newsletter publishes Nigerian investment-related news culled from various sources. The Report is based only on investment announcements cited in NIPC’s Newsletters from July to September 2019; it may not contain exhaustive information on all investment announcements in Nigeria during the period. Nevertheless, the Report gives a sense of investors’ interest in the Nigerian economy.
NIPC did not independently verify the authenticity of the investment announcements but is working on tracking the announcements as they progress to actual investments.