Despite collectively spending at least N21.04 billion on foreign trips in the last three years, 14 Nigerian states have failed to attract any foreign investments. The states in question—Bauchi, Bayelsa, Benue, Borno, Cross River, Ebonyi, Edo, Gombe, Imo, Jigawa, Nasarawa, Taraba, Yobe, and Zamfara—have been unable to secure a share of the $14.85 billion foreign investors directed into Nigeria between 2021 and the third quarter of 2023.
During this period, Bauchi spent N3.81 billion on foreign trips, Bayelsa spent N1.99 billion, Benue spent N1.33 billion, and other states similarly allocated significant amounts without attracting foreign investments.
The lack of foreign investments coincides with a general decline in investments across the country due to insecurity and other challenges. The World Bank highlighted negative net foreign direct investment (FDI) inflows into Nigeria, citing difficulties with foreign exchange availability, security concerns, and structural challenges.
Several states, including Zamfara, Jigawa, and Nasarawa, have faced security challenges such as banditry, affecting the investment climate. In Zamfara, for example, banditry has led to the occupation of numerous local government areas, causing farmers to abandon farmlands. Investors often inquire about the security situation before considering investments.
Despite efforts by some states to attract investments through foreign trips and reforms, the absence of attractive factors, stability, and predictability in these states has deterred foreign investors. Insecurity, limited potential investors, and the lack of crisis-free environments contribute to the challenges faced by these states in securing foreign investments.
Economic Implications:
The failure of these states to attract foreign investments has significant economic implications. The absence of capital imports hampers economic growth, job creation, and the development of critical sectors. Investors seek stability and predictability, making it crucial for states to address security concerns and create an attractive investment climate. Watch for potential policy changes, security improvements, and investment initiatives to assess the states’ efforts in overcoming these challenges.
