In a year that saw a dramatic 215 percent surge in foreign capital inflows into Nigeria, rising from $3.91 billion in 2023 to $12.32 billion in 2024, 31 of the country’s 36 states were completely sidelined.
Capital importation refers to the inflow of foreign funds into a country for investment in sectors such as trade, manufacturing, and financial services.
EDITOR’S PICKS
According to the National Bureau of Statistics (NBS), in its Q1 2025 capital importation report released on Tuesday, only five states and the Federal Capital Territory (FCT) attracted foreign investors in the whole of 2024.
The states that attracted foreign investments included Lagos, Kaduna, Oyo, Enugu, and Ekiti.
The Ignored States
NBS data shows that no foreign investment was recorded in the following 31 states:
Abia, Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Gombe, Imo, Jigawa, Kano, Katsina, Kebbi, Kogi, Kwara, Nasarawa, Niger, Ogun, Ondo, Osun, Plateau, Rivers, Sokoto, Taraba, Yobe, and Zamfara.
Even more striking, eight of these states — Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Taraba, Yobe, and Zamfara — have not attracted any foreign capital between 2019 and 2024.
Capital Focused on a Few
The capital importation report for Q1 2025, analysed by EKO HOT BLOG, shows that only the Federal Capital Territory (FCT) and six states received any foreign investment in the first quarter of the year.
- FCT emerged as the top investment destination with $3.04 billion, accounting for 54.11% of total capital importation.
- Lagos State followed closely with $2.56 billion (45.44%).
- Other states that received relatively small inflows were:
- Ogun – $7.95 million
- Oyo – $7.81 million
- Kaduna – $4.06 million
- Kano – $117,000
- Ekiti – $4,250
This concentration of investment highlights the regional disparities in Nigeria’s investment landscape, with the vast majority of states, particularly in the North-East, North-West, and South-South, missing out on foreign capital.
What This Means
While Nigeria’s overall capital importation has improved, the uneven distribution raises concerns about the investment-readiness of many states.
Experts have long pointed to issues such as poor infrastructure, insecurity, weak institutions, and unfriendly business environments as factors that discourage investors from entering certain regions.
FURTHER READING
As Nigeria looks to diversify its economy and attract more investment, policy reforms at both the federal and sub-national levels may be necessary to close the gap and ensure more inclusive economic growth.
Philip Ibitoye is a Special Correspondent with EKO HOT BLOG. Click here to find daily analysis and critical insight on trending issues in Lagos and other parts of Nigeria.
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