Foreign direct investment inflows to Nigeria fell by 21.21 per cent in 2020 to $2.6bn amid the impact of COVID-19 pandemic, the United Nations Conference on Trade and Development said on Sunday.

UNCTAD, in its 38th Global Investment Trends Monitor, said Egypt remained the top recipient of FDI in Africa, despite a significant decline in inflows (-39 per cent) to an estimated $5.5bn.

The report showed that Nigeria overtook South Africa to become the second-largest recipient of FDI on the continent.

It said FDI flows to Africa declined by 18 per cent to an estimated $38bn from $46bn in 2019.

“Greenfield project announcements, an indication of future FDI trends, fell 63 per cent to $28bn, from $77bn in 2019. The pandemic’s negative impact on FDI was amplified by low prices of and low demand for commodities,” the UN agency said.

It said FDI inflows to Sub-Saharan Africa decreased by 11 per cent to an estimated $28bn.

“Inflows to Nigeria declined to $2.6bn from $3.3bn in 2019. Lower crude oil prices, coupled with the closure of oil development sites at the start of a pandemic due to movement restrictions, weighed heavily on FDI to Nigeria,” UNCTAD said.

According to the report, Senegal was among the few economies with higher inflows in 2020, registering a 39 per cent increase to $1.5bn, supported by rising investments in energy.

It said inflows to Ethiopia declined by 17 per cent but were still substantial at $2.1bn as significant investments took place in the manufacturing, agriculture and hospitality sectors.

UNCTAD said FDI inflows were also steady in Mozambique, decreasing only by six per cent to $2bn as the implementation of the $20bn LNG project led by Total continued, although at slower than planned speed.