In the first quarter of 2024, Nigeria’s capital importation sector saw an unignorable disparity across its states.
Out of the 37 states, which includes the Federal Capital Territory (FCT), 34 states failed to attract any foreign investments.
The distribution of capital importation by destination, as detailed in the recent report by the National Bureau of Statistics (NBS), highlights huge differences that point to the uneven distribution of factors driving investment decisions in the country.
High Performers in Q1 2024
Lagos State: Lagos stands undisputed in attracting foreign investments. In Q1 2024, the State received $2,782.41 million. This is a big increase from its total of $2,503.44 million in 2023. Lagos’ solid economic position and infrastructure continue to make it a prime destination for investors.
Abuja (FCT): The Federal Capital Territory saw reduced investments, with $593.58 million in Q1 2024. This follows a total of $1,170.00 million in 2023, showing the need for Abuja to up its game in attracting foreign capital.
States with Minimal Investments
Ekiti State: Ekiti received a minimal investment of $0.01 million in Q1 2024. This is consistent with its performance throughout 2023, where it attracted a total of $0.05 million. The low figures reveal a need for well-thought-out initiatives to enhance investor confidence.
States with No Recorded Investments
A huge number of states recorded no investments at all in Q1 2024. While some States like Abia, Adamawa, Akwa Ibom, Anambra, Delta, Niger, Ogun, Ondo and Rivers attracted investment in 2023, they were among states that failed to attract investment in Q1 2024.
The States with no investment record so far in 2024 include:
- Abia
- Adamawa
- Anambra
- Akwa Ibom
- Bauchi
- Bayelsa
- Benue
- Borno
- Cross River
- Delta
- Ebonyi
- Edo
- Enugu
- Gombe
- Imo
- Jigawa
- Kaduna
- Kano
- Katsina
- Kebbi
- Kogi
- Kwara
- Nasarawa
- Niger
- Ogun
- Ondo
- Osun
- Oyo
- Plateau
- Rivers
- Sokoto
- Taraba
- Yobe
- Zamfara
The big difference between Lagos and the majority of other states tells us there is an obvious issue in Nigeria’s economic industry. This is the uneven distribution of foreign investments.
Several factors could contribute to this disparity, including infrastructure, as states with better infrastructure, like Lagos and Abuja, are more likely to attract foreign investments.
Again, states that have investor-friendly policies and regulatory environments tend to receive more investments, while security and stability also play a role in attracting investors.
Additionally, market size and economic activities influence investment decisions, as larger markets and lively economic activities in certain states draw more foreign capital.
Improvement in these areas could help distribute investments more evenly across the country, facilitating balanced economic growth.
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