- Despite the flow of foreign investment which rose to $8.4 billion compared to $6.3 billion in the same period of 2018, foreign investors have continue to shun some sectors like a flea.
The government has over the years embarked on several strategies in its bid to attract foreign investments into the country. They have offered tax incentives, provided intervention funds, erected trade barriers all for the sole purpose of attracting investment.
According to the data, Nigeria’s brewery sector, one of the most competitive sectors in the country attracted zero foreign investments in the first quarter of 2019.
The sector which attracted just $4.8 million in the whole of 2018, according to data from the National Bureau of Statistics, is largely dominated by the likes of Nigeria Breweries, Guinness and International Breweries.
Data from the NBS suggest capital importation in this sector is a combined $90 million since 2014.
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Also, despite the array of hotel constructions littered all over the country, the NBS report picked zero investments in the country’s hotel sector.
Most hotel investments in Nigeria are owned by Nigerians. And where they are not, investments in here come from revenues already being generated by the companies.
Foreign participation in this sector is also via hotel management which means they export capital rather than import.
Hotels employ thousands of Nigerians and their services are constantly in high demands. Unfortunately, the government hasn’t had a targeted policy for the hospitality sector in general.
Nigeria has a huge human capital development challenge and has been recognized even in more advanced sectors like the financial services sector. However, foreign investment in this sector continues to be nonexistent.
In the first quarter of 2019, Nigeria received just under $500k investments in the sector. We also attracted zero investment in 2018 and the years before. Nevertheless, for a sector that is critical to nation building and central to human capital competitiveness the level of foreign investment in this sector is too small.