Foreign Investors Ignore Delta, Ogun, Kano, 24 Other Nigerian States in 2022, Invest $5.3bn Elsewhere

• Nigeria’s capital importation report for 2022 was recently published by the National Bureau of Statistics
• According to the report, the amount of capital brought into Nigeria dropped significantly to a six-year low in 2022
• Abia, Bayelsa, Cross River and 24 other states failed to record a single dollar investment during the year

The National Bureau of Statistics (NBS) has revealed that foreign investors brought $5.3 billion into Nigeria in 2022.

The NBS disclosed this in the fourth quarter capital importation report, published on Tuesday, April 4, 2023.

Checks by Legit.ng show that the amount of foreign capital attracted in 2022 is the lowest in six years and a significant drop of $1.4 billion compared to the $6.7 billion capital inflow recorded in 2021.

Quarterly breakdown of foreign investments

A breakdown of the report reveals that in the first quarter of 2022, Nigeria received $1.57 billion in foreign investment, followed by $1.53 billion in the second quarter and $1.15 billion in the third quarter.

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The fourth quarter saw a decline in foreign investment, with a value of $1.06 billion, Punch reports.

Breakdown of the types of foreign investments

The NBS revealed that capital importation(investments) into Nigeria has three main categories: foreign direct investment(FDI), portfolio investment, and other investments.

FDI, which is when a foreign entity invests in a business in another country, stood at $468.08 million in 2022 compared to $698.78 million in 2021.

Portfolio investment, which includes investments in financial instruments like stocks and bonds, also dropped to $2.44 billion in 2022 compared to $3.39 billion the previous year.

While other investments (including trade credits, loans, and currency deposits) fell to $2.42 billion from $2.62 billion in 2021.

States' foreign investment performance in 2022

• Lagos: $3.61 billion.
• Federal Capital Territory: $1.63 billion.
• Akwa-Ibom: $42.52 million.
• Anambra: $36.97 million.
• Ekiti: $0.51 million.
• Ondo: $0.20 million.
• Oyo: $3 million.
• Plateau: $0.04 million.
• Katsina: $0.70 million.
• Kogi: $2 million.

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List of states without foreign investments in 2022

Meanwhile, 27 states suffered a massive blow as foreign investors shunned them. Below are the states that failed to attract any foreign investment in 2022:

1. Abia
2. Adamawa
3. Bauchi
4. Bayelsa
5. Benue
6. Borno
7. Cross River
8. Delta
9. Ebonyi
10. Edo
11. Gombe
12. Imo
13. Jigawa
14. Kaduna
15. Kebbi
16. Nasarawa
17. Kwara
18. Kano
19. Niger
20. Ogun
21. Ondo
22. Osun
23. Rivers
24. Sokoto
25. Taraba
26. Yobe
27. Zamfara

States with the highest IGR growth, 18 below the national average

In another report, Legit.ng provided insight into the Internally Generated Revenue of states in Nigeria over the last six years

The IGR growth is based on the value and percentage increase in revenue generated by the states

IGR indicates an improvement in the economic outlook of states and less dependence on federal allocation

Source: Legit.ng