Nigeria’s neighbours are beginning to attract a larger share of foreign investment than the West African economic giant, according to the United Nations Conference on Trade and Development (Unctad) World Investment Report 2014. The report shows that Foreign Direct Investment (FDI) inflows into West Africa declined by 14% to US$14.2 billion in 2013, with the decline largely due to reduced investment in Nigeria. Uncertainties over a longawaited petroleum industry bill and security issues triggered a series of asset disposals from foreign transnational companies (TNCs). Cargo flows will be affected as national champions and other developing-country TNCs take over the assets of the “retreating” TNCs. Examples are two pending megadeals that will see Total (France) and ConocoPhillips (United States) sell their Nigerian assets to Sinopec Group (China) and local group Oando PLC for $2.5 billion and $1.8 billion, respectively.
