By Ahmed Ayanfe
Only Lagos, Oyo and three other states attracted foreign investment (FDI) in the first quarter of 2022, a report by the National Bureau of Statistics has revealed.
The report by the NBS shows that other states that attracted FDI FDI in Q1 2022 are Katsina State, and the Federal Capital Territory (FCT) during the period.
According to the NBS’ Nigerian Capital Importation (Q1 2022), the total value of capital imported into Nigeria in the first quarter of 2022 stood at $1.6bn from $2.2bn in the preceding quarter, showing a decrease of 28.09 per cent.
When compared to the corresponding quarter of 2021, capital importation decreased by 17.46 per cent from $1.9bn.
The largest amount of capital importation by type was received through portfolio investment, which accounted for 60.87 per cent ($957.58m). This was followed by Other Investment with 29.28 per cent ($460.59m) while Foreign Direct Investment accounted for 9.85 per cent ($154.97m) of total capital imported in Q1 2022.
By destination of investment, Lagos State remained the top destination in Q1 with $1.1bn accounting for 71.16 per cent of total capital investment into Nigeria. This was followed by investment into Abuja (FCT), valued at $446.8m (28.40 per cent).
Anambra Oyo and Katsina states followed, with each raking in $4.1m, $2m and $700,000, respectively.
On the other hand, states like Abia, Adamawa, Akwa Ibom, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Ekiti, Enugu, Gombe, Imo, Jigawa, Kaduna and Kebbi 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.
According to an ECOWAS Common Investment Market consultant, Professor Jonathan Aremu, the factors that affected foreign investment are not available in the 31 states.
He maintained that investors look out for stability and predictability of investment destinations before making investment decisions.
What they are saying
He 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, Deputy-President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, mentioned rampant insecurity in some parts of the country and poor economic growth as the factors affecting Foreign Direct Investment (FDI).
Idahosa said, “We know what to do. We simply have refused to do it. We know that we should have put in place a state police system around this country maybe five or 10 years back, before Boko Haram became a monster. If we had state police in Borno State when Boko Haram was a very small, tiny group of ruffians creating local problems, perhaps we never would have heard of Boko Haram.
“Generally, the police system should be taken out of 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.”