In Africa’s biggest economy, states are finding out that attracting Foreign Direct Investment (FDI) won’t be a smooth ride in a post-pandemic world or Russia/Ukraine war era where access to private capital is keenly contested.
Although Nigeria boasts of a flourishing tech scene owing to its youthful 206 million population, the country’s perpetual lack of structural reforms means deep-pocket foreign investors are pressing pause on Nigeria’s huge potential and abundant natural resources.
Latest data from the National Bureau of Statistics (NBS) show 32 states failed to attract capital importation in the second quarter of 2022.
For most experts, the decline in foreign investments for the past five years can be traced to the degrading state of Nigeria’s oil fortunes as active oil explorations bring about a billion investments in the country’s economy as well as the development of related sectors of the economy and infrastructure.
States with the highest foreign capital inflows
In a period of slow economic growth, Lagos State, Nigeria’s commercial city, maintained its position as Nigeria’s biggest destination for foreign capital inflows, according to the second quarter (q2) capital importation by NBS.
The state topped other states to account for 69 percent of the total foreign capital inflow into the country during the period amounting to $1.05 billion, 35 percent higher than the $780.06 million recorded in the second quarter of 2021.
However, on a quarterly basis, the value of foreign capital inflows to Lagos dropped by six percent from $1.12 billion in the first quarter of 2022.
Furthermore, only about five states received foreign inflows, with Abuja trailing a far second with $453.95 million, which represents 29.6 percent of the total inflows recorded in the period.
Details of other states’ imported capital in the second quarter of 2022 show that Anambra attracted $24.71 million, Ekiti attracted $500,000, and Kogi attracted $2 million.
States with the lowest foreign capital inflows
Thirty-two states did not attract any form of investment, a development that exposes the deplorable state of foreign investments in the affected states.
These states include Abia, Adamawa, Akwa Ibom, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebony, Edo, Enugu, Gombe, Imo, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kwara, Nasarawa, Niger, Ogun, Ondo, Osun, Oyo, Plateau, Rivers, Sokoto, Taraba, Yobe, and Zamfara.
States that received highest foreign capital inflows since Q2’2015
Year-on-year, Lagos State and Abuja have been the country’s top destinations for foreign capital inflows.
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States that received least foreign capital inflows since 2015
Some states have received foreign capital inflow once since the second quarter of 2015, and they include Abia which received $1.27 million in Q2’ 2018, and Adamawa, $16.1 million. Delta in the same period received $1.12 million, Bauchi, $2 million, while Edo attracted $1.04 million in Q2’ 2019.
Also, Niger State in Q2′ 2020 received $6.86 million, Kaduna in Q2’ 2019 attracted $1.97 million, Ekiti in Q2’ 2022 got $500,000, while and Kogi received $2 million in Q2’ 2022.
States that have not attracted any form of capital inflow since Q2’2015
Year-on-year, from Q2’ 2015 to Q2’ 2022, some states have not received foreign capital inflows. Some of these include Bayelsa, Benue, Borno, Cross River, Ebony, Gombe, Imo, Jigawa, Kebbi, Osun, Taraba, Yobe and Zamfara.
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