Thirty-two states in Nigeria, including Rivers and Kaduna, did not attract any foreign investment in the first quarter of 2022.
A National Bureau of Statistics (NBS) report shows that only the states of Lagos, Oyo, Katsina, Anambra and the Federal Capital Territory attracted investment during the period.
According to NBS’ Nigerian Capital Importation (Q1 2022), the total value of capital imported into Nigeria in the first quarter of 2022 was $1.6 billion compared to $2.2 billion in the previous quarter, a decrease of 28 .09%.
Compared to the corresponding quarter of 2021, capital import decreased by 17.46% to $1.9 billion.
The largest amount of imported capital by type was received through portfolio investment, which accounted for 60.87% ($957.58 million). Next come other investments with 29.28% ($460.59 million) while foreign direct investment accounted for 9.85% ($154.97 million) of the total capital imported in the first quarter of 2022.
By investment destination, Lagos State remained the top destination in the first quarter with $1.1 billion accounting for 71.16% of total capital investment in Nigeria. This was followed by an investment in Abuja (FCT), valued at $446.8 million (28.40%).
Anambra Oyo and Katsina States followed, each winning $4.1 million, $2 million and $700,000 respectively.
On the other hand, Abia, Adamawa, Akwa Ibom, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Ekiti States , Enugu, Gombe, Imo, Jigawa, Kaduna and Kebbi did not attract any foreign investment during the period under review.
The others are Nasarawa, Kogi, Kwara, Kano, Niger, Ogun, Ondo, Osun, Plateau, Rivers, Sokoto, Taraba, Yobe and Zamfara states.
The categorization of total capital investment by bank shows that Standard Chartered Bank Nigeria ranked first in the first quarter with $543.20 million (34.53%). This is followed by Citi Bank Nigeria Limited with $439.03 million (27.91%) and Stanbic IBTC Bank Plc with $251.52 (15.99%).
Speaking in an interview, an ECOWAS Common Investment Market consultant, Professor Jonathan Aremu, said, “It’s simple. This is because they lack the pull factors. Factors that attract foreign investment are not available in these 31 states. One thing about investing is that it is crisis-shy. Investment does not go where there is a crisis. Why? Because investors want stability and predictability in their investments, in particular, to have returns on their investments.
“When an economy experiences what we are currently seeing, despite the investment potentials of that type of economy, investors will wait to see if the factors that can ensure predictable and sustainable investment finally become available.”
He added that the twin factors of a good investment climate as well as a good perception of that climate should be present for investors to develop the confidence needed to attract investment to the country.
Similarly, Vice President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, cited factors such as insecurity and the economic crisis that Nigeria has experienced in recent years as key reasons why investors may not see Nigeria as the best possible destination.
Also Read: NBS: Gold and Others Generate N19.2 Billion for FG in Q1
Idahosa said, “We know what to do. We simply refused to do so. We know that we should have established a state police system across the country maybe five or ten years ago, before Boko Haram became a monster. If we had the State Police in Borno State when Boko Haram was a very small group of thugs creating local problems, we might never have heard of Boko Haram.
“As a rule, the police system should be removed from the exclusive list; so we can have a state police and a municipal police, like we have in other federations. The New York Police Department has a budget that is probably bigger than the Nigerian police. Same thing with the LAPD. We know what to do, it’s just the political confidence to do it.