Nigeria drops to 17th position on Africa Attractive Index

By Babajide Komolafe

LAGOS—The number of new Foreign Direct Investment, FDI, projects attracted into Nigeria dropped marginally by three per cent in 2016, while the country declined to the 17th position on Ernst and Young’s Africa Attractiveness 2017 Index.

This was contained in the Ernst and Young’s Africa Attractive Index, AAI, 2017 report published, yesterday, by the global accountancy firm.

Among other things, the report disclosed that the number of new FDI projects in Nigeria declined to 51 in 2016 from 53 in 2015. The report also indicated that Nigeria dropped two steps in the Africa Attractive Index 2017, to 17th position from 15th position in 2016 index.

It also revealed that Nigeria attracted 7.5 per cent of new FDI projects in Africa in 2016, and accounted for 6.7 per cent of value of FDI inflows into the continent during the year. Nigeria also accounted for 4.9 per cent or 6,328 jobs of the total jobs created by new FDI projects in the continent during the year.

The report stated: “In the west of Africa, recession in Nigeria resulted in FDI projects eazing 3.8 per cent compared with 2015. With the plunge in crude prices, Africa’s largest oil exporter has been hit by a scarcity of foreign exchange, impacting businesses that are already grappling with issues, including insufficient power supply and complexity in paying taxes.

“Nigeria’s business environment is in urgent need of improvement, considering the country’s 169th ranking on the World Bank’s Ease of Doing Business Index 2017.

“On a more positive note, the sheer size of the Nigerian market and its diversification initiatives have led to a significant shift in the nature of FDI to the country.”

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