Thirty-two states in Nigeria (Kaduna and Rivers) did not attract any foreign investments in the first quarter of 2022- PUNCH. A report by the National Bureau of Statistics shows that only Lagos, Oyo, Katsina, Anambra states, and the Federal Capital Territory attracted investment during the period.
According to the NBS’ Nigerian Capital Importation (Q1 2022), total value stood at $1.6bn from $2.2bn in the preceding quarter. When compared to the corresponding quarter of 2021, capital importation decreased by 17.46% from $1.9bn. Portfolio investment got the most capital imports of any category, accounting for 60.87 percent ($957.58 million). Other Investment came in second with 29.28 percent ($460.59 million) in Q12022, followed by Foreign Direct Investment with 9.85 percent ($154.97 million).
By destination of investment, Lagos State remained the top destination in Q1 with $1.1bn accounting for 71.16% into Nigeria. This was followed by a $446.8 million investment in Abuja (FCT) (28.40%). Anambra Oyo and Katsina states followed, with each raking in $4.1m, $2m and $700,000, respectively. On the other hand, Abia, Adamawa, Akwa Ibom, etc states failed to attract any foreign investments during the period under review. Others are Nasarawa, Kogi, Kwara, Kano, Niger, Ogun, Ondo, Osun, Plateau, Rivers, Sokoto, Taraba, Yobe and Zamfara states. Categorisation of total capital investment by bank shows that Standard Chartered Bank Nigeria ranked highest in Q1 with $543.20m (34.53%). Citi Bank Nigeria Limited came in second with $439.03 million (27.91 percent) while Stanbic IBTC Bank Plc came in third with $251.52 million (15.99 percent ).
Speaking in an exclusive interview with The PUNCH, an ECOWAS Common Investment Market consultant, Professor Jonathan Aremu, said, “It’s simple. It’s because they don’t have the attracting factors. The factors that attract foreign investment are not available in those 31 states. One thing about investment is that it is crisis shy. Investment doesn’t go to places where there are crisis. Why? Because investors want stability and predictability of their investments, particularly, having returns on their investments. “When an economy is witnessing what we are witnessing currently, despite the investment potentials of that kind of economy, investors will wait and see whether the factors that can guarantee predictable and sustainable investments will finally be available.”
Similarly, the Deputy-President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, cited factors such as insecurity and the economic crisis experienced in Nigeria in recent years as major reasons why investors may not consider Nigeria the best possible destination.
“The police system, in general, exempted from the Exclusive list; so we can have state police, and municipal police, just like we have in other federations. The New York Police Department has a budget that is probably higher than the Nigerian Police. Same thing with the Los Angeles Police Department. We know what to do, it’s just the political confidence to do it.”
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