• As 26 States Attract Zero Investments
Tayo Busayo, Abuja
DAILY COURIER - Nigeria’s capital importation surged to $2.60 billion in the second quarter of 2024, a 152.81% year-on-year increase from $1.03 billion in Q2 2023, according to the latest report from the National Bureau of Statistics (NBS). However, the report also reveals a significant disparity in investment distribution, with Lagos, Abuja, and ten other states accounting for the entire capital inflow, while 26 states failed to attract any foreign investments within the period.
Lagos, Nigeria’s commercial hub, maintained its dominance, drawing in $1.37 billion in capital inflows, which represents 52.52% of the total foreign investment in Q2 2024. This underscores Lagos's position as the top destination for investors, particularly in sectors like finance, manufacturing, and technology.
Abuja Emerges as a Close Contender
Closely following Lagos, the Federal Capital Territory (FCT), Abuja, attracted $1.24 billion, representing 47.48% of the total capital importation for the quarter. With its status as the administrative and political center of the country, Abuja has continued to benefit from investor confidence, particularly in real estate, public infrastructure, and the services sector.
States with Zero Capital Importation
Despite the significant growth in foreign investment inflows to Lagos and Abuja, 26 states—including Oyo, Delta, and Zamfara—reported zero capital importation between Q2 2023 and Q2 2024. This marks a slight improvement from the same period last year, when 27 states had no foreign investment inflows. However, the 2024 report highlights ongoing challenges for many states, particularly in attracting foreign capital to key sectors like agriculture, industry, and tourism.
The 26 states without recorded foreign investments in the one-year period are:
1. Bauchi
2. Bayelsa
3. Benue
4. Borno
5. Cross River
6. Delta
7. Ebonyi
8. Edo
9. Enugu
10. Gombe
11. Imo
12. Jigawa
13. Kaduna
14. Kano
15. Katsina
16. Kebbi
17. Kogi
18. Kwara
19. Nasarawa
20. Osun
21. Oyo
22. Plateau
23. Sokoto
24. Taraba
25. Yobe
26. Zamfara
Challenges Facing Investment Attraction in 26 States
Experts attribute the lack of investment in these states to several factors, including insecurity, poor infrastructure, and unclear investment policies. States in the northeast and northwest regions, such as Borno, Yobe, and Zamfara, have been particularly affected by insecurity, which deters investors. On the other hand, states in the southwest and south-south regions, such as Oyo, Delta, and Bayelsa, are grappling with poor infrastructure and regulatory bottlenecks that make investment less attractive.
Sectoral Distribution of Capital Importation
The NBS report further reveals that the bulk of the capital importation was concentrated in sectors such as banking, telecommunications, and manufacturing. The financial sector, driven by Lagos and Abuja, remains the top contributor to foreign capital inflows, accounting for a significant percentage of the total investments.
Outlook for Nigeria's Investment Landscape
As Lagos and Abuja continue to attract the lion’s share of capital importation, analysts emphasize the need for other states to improve their investment climates by addressing security challenges, providing better infrastructure, and creating transparent policies that appeal to foreign investors. Without these changes, the gap between Nigeria’s top investment destinations and the rest of the country is likely to widen further.
Despite the uneven distribution of foreign capital, the overall growth in capital importation suggests that Nigeria remains an attractive destination for foreign investors, particularly in its key urban and economic hubs. As the country continues to focus on economic reforms and improving the ease of doing business, there is optimism that more states will begin to attract foreign investments, contributing to a more balanced economic development.