Abubakar Bagudu, minister of Budget and Economic Planning, disclosed this during an interview for an upcoming documentary to mark President Bola Tinubu’s second year in office.

He emphasized the positive outcomes of the administration’s Renewed Hope Agenda, stating that it has restored confidence both domestically and among international investors.

According to the Minister, the Tinubu administration has, within its first two years, reaffirmed the government’s commitment to economic reforms, making bold yet necessary decisions to confront the nation’s economic realities—decisions that are now beginning to yield tangible results.

He pointed to key indicators such as sustained GDP growth for four consecutive quarters, a more stable exchange rate, and renewed private sector confidence.

He added that both foreign and domestic investors have responded positively, especially in sectors such as agriculture, energy, and infrastructure—citing a surge in interest from countries like Brazil, Belarus, and Saudi Arabia in the agricultural sector.

The Minister also emphasised that the unification of the exchange rate and removal of fuel subsidies have contributed to a more equitable market environment. He said:

“We were losing five percent of our GDP on fuel subsidies—money going to just a few. Mr President took the courageous step to end it.

The foreign exchange reform removed uncertainty and favouritism. We now have a fair market—willing buyer, willing seller—which has generated revenue growth and boosted private sector confidence.”

While acknowledging the short-term hardship caused by the reforms, Bagudu urged Nigerians to see them as essential steps toward building a more prosperous nation.

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:

1. Abia
2. Adamawa
3. Anambra
4. Akwa Ibom
5. Bauchi
6. Bayelsa
7. Benue
8. Borno
9. Cross River
10. Delta
11. Ebonyi
12. Edo
13. Enugu
14. Gombe
15. Imo
16. Jigawa
17. Kaduna
18. Kano
19. Katsina
20. Kebbi
21. Kogi
22. Kwara
23. Nasarawa
24. Niger
25. Ogun
26. Ondo
27. Osun
28. Oyo
29. Plateau
30. Rivers
31. Sokoto
32. Taraba
33. Yobe
34. 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.