Only 9 Nigerian states got foreign investments in first quarter of 2023

Capital inflows into Nigeria declined 28% in the three months through March to $1.1 billion compared with a year ago, with 28 states receiving zero flows during the period.

The National Bureau of Statistics said on Monday only Abuja, Lagos, Adamawa, Akwa Ibom, Ekiti, Ogun, Ondo, Niger and Anambra received investments.

Lagos and Anambra got less than they received a year ago through March, while Ogun, Niger, Ondo and Adamawa recorded flows this time despite achieving zero last year.

– The numbers

The biggest investments went to Lagos ($705 million) and Abuja ($410). Akwa Ibom came third with $5.2 million and Adamawa ($4.5 million).

Inflows for the entire country during the period rose 6.8% above what Nigeria received in the preceding fourth quarter of 2022.

The largest capital importation came from portfolio investors, with 57.3%. “Other investment” was responsible for 38.31%, while foreign direct investment was 4.2%.

More inflows came from the United Kingdom at 59.5%, followed by the United Arab Emirates and the US with 9.6% and 8.4% respectively, NBS said.

– Reforms

Nigeria has received less foreign investment inflows in the past years owing to tight capital controls by the central bank and poor infrastructure that deter external investors.

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

That year, 27 states attracted no foreign capital into Nigeria in 2022.

The new government led by Bola Tinubu has introduced reforms, sacking the central governor, removing petrol subsidy easing foreign-exchange controls.