States in Africa’s largest oil producer are finding it hard to lure in investors as just five out of the 36 states drove a measly $1.2 billion foreign investments in the three months to September.
According to the latest National Bureau of Statistics (NBS) capital importation report for the third quarter of 2024, Lagos state remains the top destination of investment in the country, accounting for $650.41 billion or 51.92 percent of total capital imported in the reference period.
“Abuja (FCT) followed with $600.02 billion (47.90%), and Kaduna state with $1.95 billion (0.16%). Others were Enugu and Ekiti states with $184,229 million and $96,600 million respectively,” the NBS said in its report.
It further revealed that Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Taraba, Yobe, and Zamfara haven’t generated investments in the last six years, signaling a waning interest of potential investors for the states which is exacerbated by persistent insecurity and huge infrastructural deficit.
Nigeria, Africa’s most populous nation reported its lowest capital importation inflow in the third quarter of 2024, dropping to $1.25 billion, highlighting an eroding investor confidence in the economy.
The country’s inflow fell by significantly 51.90 percent to $2.6 billion in the second quarter of 2024. The Q3 2024 figure also reflects a sharp contrast to the $3.4 billion inflow recorded in the first quarter of the year, showing that the foreign inflow has been declining for three consecutive quarters.
Read also: Why Lagos, Abuja, Kaduna attracted investments in Q3
The slump in the capital importation was driven by a 35.98 percent decline in the country’s portfolio investment to $899 million from $1.4 billion and a 78.67 percent decline in its other investment during the period under review.
Meanwhile, foreign direct investments (FDIs) into Nigeria increased by 248.07 percent to $103 billion in Q3 from a paltry $29.83 billion in Q2. But this is lower than $119 billion recorded in Q1 and $183 billion seen in the last quarter of 2023.
The NBS report added that capital importation during the reference period originated largely from the United Kingdom with $502.60 million, showing 40.12 percent of the total capital imported.
“This was followed by the Republic of South Africa with $185.03 million (14.77 percent) and the United States with $163.86 million (13.08 percent).”
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