Foreign investors ignored 24 states as the value of capital imports into Nigeria fell 30.78% to $6.7 billion in 2021 from $9.68 billion in 2020.
The National Bureau of Statistics (SNB) revealed this in its latest report on Nigerian capital imports for the four quarters of 2021.
The report examined the value of new investments that poured into the Nigerian economy in 2021.
According to the report, the 24 states include Adamawa, Bauchi, Bayelsa, Benue, Borno, Cross River, Ebonyi, EdoEnugu, Gombe, Imo, Jigawa, Kaduna, Katsina, Kebbi, Kogi, Nasarawa, Niger, Ondo, Plateau, Sokoto, Taraba, Yobe and Zamfara.
Of the 24 states, ten have also failed to attract foreign investment in the past three years.
These states are Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Kogi, Plateau, Taraba, Yobe and Zamfara.
LAGOS REMAINS THE CHOICE OF INVESTORS
Lagos eclipsed other states and the Federal Capital Territory (FCT) topped the list of states that attracted the most investment in 2021.
The commercial city of the country attracted 5.8 billion dollars of investments, which represents 87% of the total inflow of capital in the country for the period under review.
This figure represents a 30% drop from the $8.31 billion in investments in 2020.
Abuja (FCT) became the second largest investment destination with $833.4 million, down 34% from $1.27 billion in 2020.
Other states that attracted foreign investment in 2021 are Osun ($29.9 million), Anambra ($4.7 million), Kano ($2.55 million), Oyo ($2.0 million ) and Ogun ($1.06 million).
Akwa Ibom follows with $0.74m, Ekiti ($0.50m), Kwara ($0.23m) and Abia ($0.01m), while Rivers and Delta each had an investment of $1.0 million in 2021.
Out of 51 countries that invested in Nigeria, the UK emerged as the top source of capital investment in 2021 with $2.19 billion.
South Africa followed by $1.05 billion in 2021; Mauritius ($690.91 million); and the United States ($677.54 million).
FG HAS IMPLEMENTED REFORMS TO EASE DOING BUSINESS – LAI
According to the World Bank’s 2020 Doing Business Index, which was the latest report, Nigeria ranked 131st out of 190 economies across the world for running a business, up from 146th the previous year.
Many believe that the government continues to do business on lip service as foreign direct investment has continued to decline, in part due to certain obstacles imposed on foreign companies wishing to invest in Nigeria.
Lai Mohammed, Minister of Information and Culture, Explain that the Presidential Council for the Business Environment (PEBEC) has implemented more than 150 reforms on the ease of doing business.
PEBEC was set up in July 2016 by President Muhammadu Buhari to remove bureaucratic constraints on doing business in Nigeria.
According to Mohammed, as a result of the reforms, Nigeria’s 2018 subnational Doing Business report recorded unprecedented improvement and the World Economic Forum (WEF), in its 2018 Global Competitiveness Report, recognized the business environment. Nigerian business as one of the most enterprising in the world. world and highlighted Nigeria’s improved competitiveness in a conducive business environment.
He noted that the Companies and Allied Matters Act 2020 (CAMA 2020) signed by the President, introduced at least 15 new provisions that promote ease of doing business and reduce regulatory hurdles in Nigeria.
The minister also listed other reforms, including visas on arrival for business people, a reduction in the time required to register a business with the Corporate Affairs Commission (CAC) and the introduction of electronic filing and payment of federal taxes.
Despite these reforms, the country still faces devastating problems such as kidnappings, murders and attacks on government facilities and security infrastructure.