States in Africa’s largest oil producer are struggling to entice investors, as merely five out of the 36 states accounted for a meager $1. 2 billion in foreign investments during the three months leading to September.
According to the most recent National Bureau of Statistics (NBS) capital importation report for the third quarter of 2024, Lagos state continues to be the principal destination for investments in the country, representing $650. 41 billion or 51. 92 percent of the total capital imported during the specified period.
“Abuja (FCT) followed with $600. 02 billion (47. 90%), and Kaduna state with $1. 95 billion (0. 16%). Other participants included Enugu and Ekiti states with $184,229 million and $96,600 million respectively,” the NBS stated in its report.
It further disclosed that Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Taraba, Yobe, and Zamfara have not attracted investments in the past six years, indicating a diminishing interest from potential investors in these states, worsened by ongoing insecurity and substantial infrastructural deficits.
Nigeria, Africa’s most populous nation, reported its lowest capital importation inflow in the third quarter of 2024, decreasing to $1. 25 billion, underscoring a decline in investor confidence in the economy.
The country’s inflow plummeted significantly by 51. 90 percent to $2. 6 billion in the second quarter of 2024. The Q3 2024 figure also stands in stark contrast to the $3. 4 billion inflow noted in the first quarter of the year, evidencing a decrease in foreign inflows for three consecutive quarters.
The downturn in capital importation was driven by a 35. 98 percent drop in the country’s portfolio investments to $899 million from $1. 4 billion and a 78. 67 percent reduction in its other investments during the review period.
Meanwhile, foreign direct investments (FDIs) into Nigeria surged by 248. 07 percent to $103 billion in Q3 from a scant $29. 83 billion in Q2. Nonetheless, this remains below the $119 billion recorded in Q1 and the $183 billion observed in the last quarter of 2023.
The NBS report specified that capital importation during the reference period was primarily sourced from the United Kingdom, contributing $502. 60 million, which represents 40. 12 percent of the total capital imported.
“This was followed by the Republic of South Africa with $185. 03 million (14. 77 percent) and the United States with $163. 86 million (13. 08 percent). ”
