27 states in Nigeria attracted zero foreign capital in 2022

Twenty-seven states attracted no foreign capital into Nigeria in 2022, according to government figures released Tuesday.

Nigeria recorded $5.3 billion as capital importation last year, a huge fall from over a decade-high $24 billion recorded in 2019.

Capital importation includes foreign direct investment, foreign portfolio investment and other investments. Of the three components, FDI gives the best picture of foreign investment in a country as it captures actual investing in economic programmes.

Last year, Nigeria only recorded $468 million as FDI, about 30% lower than a year earlier. Portfolio investment was $2.44 billion while other investments stood at $2.41 billion.

– Poor run by states

The National Bureau of Statistics which released the data on Tuesday did not provide details of FDI for different states. It showed the envelop capital inflows.

The figures show that of total $5.3 billion, Lagos drew the highest at $3.6 billion followed by Abuja with $1.63 billion.

Akwa Ibom followed with $42 million, while Anambra recorded $36.97 million.

Others are Oyo: $3 million, Kogi: $2 million, Katsina: $700,000, Ekiti: $510,000, Ondo: $200,000 and Plateau: $40,000.

All remaining 27 states recorded no inflows in the year.

– Economic troubles

The International Monetary Fund (IMF) has cited the CBN’s intervention in Nigeria’s foreign exchange market as a hindrance to capital inflows.

““In the medium term, the CBN should step back from its role as main forex intermediator, limiting interventions to smoothing market volatility and allowing banks to freely determine forex buy-sell rates,” it said in November.

Naira has depreciated by 57% against the U.S. dollar since President Buhari took office in 2015, forcing some companies to exit as a result of dollar shortage and restrictions on repatriating funds.

Last month, global airline industry association IATA said Nigeria was withholding $743 million in revenue earned by international carriers operating in the country, the highest amount owed by any nation.

Emirates Airline said it had “substantial” amount of ticket sale revenue trapped in Nigeria and has made only slow progress in repatriating blocked funds out of Africa’s biggest economy.