… Leads Anambra, Kogi, Others In Foreign Investment input
…. As 32 states failed in attracting foreign investment inflow
Lagos State led three other states that received foreign investment during the second quarter of 2022 according to the National Bureau of Statistics. on Wednesday.
The State of Aquatic Splendour and Nigeria’s commercial nerve centre, attracted $1.05bn. Out of the 36 states and the Federal Capital Territory, only Lagos, Abuja, Anambra, Ekiti, and Kogi witnessed capital inflows.
Thirty-two states failed to attract capital importation inflow according to a Foreign Direct Investment data released by the National Bureau of Statistics on Wednesday.
Cumulative capital inflows totalled $1.54bn as Lagos attracted the most capital in the period under review, followed by Abuja at $453.95m, Anambra at $24.71m, Kogi at $2m, and Ekiti at $500,000.
According to the data from the NBS, the states had been attracting enough foreign investments.
In the first quarter, only six states attracted a total of $1.57bn as capital importation.
The states included Abuja, Anambra, Katsina, Lagos, Oyo, and Plateau.
Generally, capital importation into the nation has been on a steady decline.
In its ‘Nigerian Capital Importation’ report for Q2, 2022, the nation’s statistics body said, “The total value of capital importation into Nigeria in the second quarter of 2022 stood at $1.54bn from $875.62m in the corresponding quarter of 2021, showing an increase of 75.34 per cent.
“When compared to the preceding quarter, capital importation decreased by 2.40 per cent from $1.57bn. The largest amount of capital importation was received through Portfolio Investment, which accounted for 49.33 per cent ($757.32m). This was followed by Other Investment with 41.09 per cent ($630.87m) and Foreign Direct Investment accounted for 9.58 per cent ($147.16m) of total capital imported in Q2 2022.
“Disaggregated by Sectors, capital importation into banking had the highest inflow of $646.36m amounting to 42.10 per cent of total capital imported in the second quarter of 2022. This was followed by capital imported into the production sector, valued at $233.99m (15.24m), and the financing sector with $197.31m (12.85 per cent).”
The United Kingdom ($781.05m) was the largest source of capital importation, followed by Singapore and the Republic of South Africa which brought in $138.58m and $122.26m respectively.
In an earlier interview with The PUNCH, an ECOWAS Common Investment Market consultant, Prof. Jonathan Aremu, had said, “It’s because they don’t have the attractive factors. The factors that attract foreign investment are not available in those 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.”
