Nigeria’s commercial city, Lagos State, is losing its appeal among global investors interested in doing business in Africa’s largest economy.

According to investment data compiled by Nigerian Investment Promotion Commission (NIPC) South-West states occupied the top five investment destinations in Nigeria between January to June 2021.

The data showed that $10.11 billion (against $5.06 billion of H1 2020) was invested in Nigeria for 29 projects across 14 states, but Bayelsa, Delta, and Akwa Ibom accounted for the larger chunk.

Lagos not top choice of investors in first half 2021

Bayelsa received $3.60 billion worth of investment, which represents 36 percent of the total investment, Delta accounted for $2.94 billion (29%), and $1.40 billion (14%) was invested into Akwa Ibom.

Lagos State comes next, accounting for 7 percent of the total investment, which represents $0.70 billion, while other states were destination of $1.47 billion worth of investment (15%).

Ogun State displace Lagos State on investors top choice in Q2

In Q2 2021, the level of investment into Nigeria rose to $1.69 billion, against the $249.9 million recorded in the corresponding period of Q2 last year, during the COVID-19 outbreak period.

Ogun State led the investment destination with $500 million – which accounted for 30 percent of the total investment for the quarter – taking the number one position from Lagos [Q2 2020 top choice].

Lagos occupied the second position having attracted $441.3 million investment during the period under review, to hold a share of 26 percent.

While Nasarawa and Rivers received $300 million worth of investment (18%), and other states recorded $150.3 million, representing 9 percent.

Top investment source Q2 2021

Over 70 percent of the investment into these states in the second quarter of 2021 were from outside source, with China leading with $900 million.

UK followed, contributing $400 million, while $340 million came from Nigeria, $34.2 million was sourced from the United States and $18.8 million was from other sources.

Top investment source First-Half 2021

In the First-Half of 2021, majority of the investment into the States came from Nigeria, which provided $3.29 billion and Morocco contributed $1.40 billion.

China came next with $0.95 billion worth of investment, while UK accounted for $0.64 billion of the investment and other countries contributed $3.82 billion.

Top investment destination by sector

In the First-half of 2021, investors sector preference were: Manufacturing ($5.9 billion: 58%), Construction ($2.9 billion: 29%), Electricity* US$0.68 billion: 7%).

Also on the list is information & Communication ($0.41 billion: 4%), other sectors ($0.21 billion: 2%)

In Q2 2021, top investment destination by sectors were: Manufacturing ($821.4 million: 49%), Electricity ($420 million: 25%).

Information & Communications ($412.8 million: 24%) Real Estate ($20 million: 1%), and other sectors accounted for $18.80 million: 1%).