Foreign Investment Drought: 32 Nigerian States Struggle to Attract Capital in 2024

In a troubling economic revelation, the latest National Bureau of Statistics (NBS) data shows that 32 out of 36 Nigerian states have failed to attract any foreign investment in the first nine months of 2024, a deterioration from 2023, when 27 states were in a similar position.

The numbers tell a story of concentrated economic activity, with just five locations—Lagos, Ekiti, Enugu, Kaduna, and the Federal Capital Territory (FCT)—managing to draw any capital importation this year. Lagos leads the pack by a considerable margin, attracting an impressive $4.6 billion, followed by the FCT with $2.39 billion.

Total capital importation for 2024 stands at $7.1 billion, a 91.35% increase from $3.9 billion in 2023. However, this headline figure masks a more complex and uneven economic reality. The third quarter of 2024 saw a 51.90% decline in investments, dropping to $1.25 billion from $2.60 billion in the previous quarter.

Smaller states like Ekiti managed minimal investments—just $120,000 for the year—while states rich in natural resources, including oil-producing regions like Bayelsa and Rivers, attracted zero foreign capital.

Analysts point to critical factors driving this investment concentration. Infrastructure, regulatory environments, and economic activities in Lagos and the FCT create an attractive ecosystem for investors. Conversely, other states struggle with challenges including persistent security concerns, lack of investor confidence, poor governance structures, and inadequate infrastructure.

This investment pattern highlights a crucial economic challenge for Nigeria – the inability to spread economic opportunities evenly across the nation. While the overall capital importation has increased, the benefits remain narrowly concentrated, exacerbating regional economic disparities.