Nigeria’s Foreign Investment Hits 17-Year Low At $3.9bn In 2023

Nigeria’s Foreign Investment Hits 17-Year Low At $3.9bn In 2023

In a significant downturn, Nigeria’s capital importation experienced a sharp decline of 26.4%, plummeting to $3.9 billion in 2023, marking a troubling 17-year low since 2007…..READ ALSO Nigeria Poised To Host African Central Bank, President Tinubu Assures AU Leaders

The latest data unveiled by the National Bureau of Statistics (NBS) paints a stark picture, revealing that foreign portfolio investment (FPI) accounted for $1.15 billion, representing 29.5% of the total capital importation for the year.

Meanwhile, foreign direct investment (FDI) stood at $377.4 million, while other investments amounted to $2.38 billion throughout the year.

The NBS report also highlights a concerning trend, with eight states recording zero foreign investment over the past five years (2019 – 2023). These states include Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Taraba, Yobe, and Zamfara, signaling challenges in attracting foreign capital inflow.

Digging deeper into the data, Lagos State emerges as the top investment destination, along with the Federal Capital Territory (FCT), accounting for the lion’s share of foreign investments in 2023. Lagos State alone attracted $2.50 billion, representing a staggering 64% of the total capital inflow, followed closely by the FCT with $1.17 billion, capturing 30% of the total.

While Lagos and the FCT dominate, other states also witnessed foreign investment albeit at lower levels. Abia secured $150.09 million, Akwa Ibom attracted $39.13 million, Ogun received $27.09 million, and Rivers saw $6 million in foreign investments.

Furthermore, Adamawa, Anambra, Niger, Ondo, and Ekiti recorded modest foreign investments ranging from $51,000 to $4.5 million, underscoring the diverse landscape of foreign capital inflow across Nigeria.

As Nigeria navigates economic challenges and strives to attract foreign investment, these figures serve as a wake-up call, highlighting the urgency for policies and initiatives to bolster investor confidence and create an enabling environment for sustainable economic growth and development.