32 Nigerian States Record Zero Foreign Investments In 2024 – What’s Happening?

32 Nigerian states attract no foreign investments in 2024, with capital inflows concentrated in Lagos and the FCT. Experts call for urgent reforms to address systemic barriers......Read The Full Article>>.....Read The Full Article>>

In a stark reflection of Nigeria’s uneven economic landscape, 32 out of 36 states failed to attract any foreign investments in the first nine months of 2024. This worrying trend, highlighted in the latest report by the National Bureau of Statistics (NBS), shows an increase from 27 states reporting zero capital importation in 2023. Despite a year-on-year rise in total capital inflows, the concentration of foreign investments in a few states underscores persistent regional inequalities and economic inefficiencies.

The NBS report reveals a decline in capital importation for the third quarter of 2024, with Nigeria attracting only $1.2 billion, a dramatic drop from $2.6 billion in the second quarter and $3.3 billion in the first. Cumulatively, Nigeria received $7.1 billion in foreign investments from January to September, almost doubling the $3.9 billion recorded in all of 2023.

While these figures represent an overall improvement, the uneven distribution of these investments poses a significant challenge.

Dominance of Lagos and the FCT

The bulk of foreign investments in 2024 flowed into a select few regions:

Lagos State: Dominated with $4.6 billion, reinforcing its position as Nigeria’s economic hub.

Federal Capital Territory (FCT): Recorded $2.39 billion, benefiting from its strategic importance as the nation’s capital.

Ekiti State: Received a modest $120,000, followed by Enugu with $180,000 and Kaduna with $1.95 million.

In stark contrast, states such as Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Taraba, Yobe, and Zamfara failed to secure any foreign investments. Even oil-producing states like Bayelsa and Rivers, which play crucial roles in Nigeria’s economy, reported no inflows.

The concentration of foreign capital in Lagos and the FCT highlights significant disparities in infrastructure, security, and governance across Nigeria. While these regions thrive on robust regulatory frameworks and economic activities, the lack of investment in other states reveals systemic challenges that deter foreign capital.

Factors such as insecurity, inadequate infrastructure, and weak investor confidence continue to undermine the potential of resource-rich regions. For instance, Bayelsa and Rivers, despite their prominence in the oil and gas sector, struggle to attract meaningful foreign capital due to these persistent issues.

The third-quarter decline of 51.90% in foreign investments compared to Q2 2024 raises questions about the sustainability of Nigeria’s capital inflow growth. Despite an annual increase of 91.35% compared to Q3 2023, the retreat in recent quarters signals volatility and potential structural weaknesses in Nigeria’s investment climate.