Nigeria’s foreign investment inflow has experienced a significant decline of $18.6 billion over a four-year period from 2019 to 2022, according to data released by the National Bureau of Statistics.
The nation, however, managed to accumulate approximately $46 billion in foreign investments during this time frame.
Lagos State led the way in attracting foreign capital with $35.4 billion, followed by the Federal Capital Territory with $10 billion. Unfortunately, eight states, including Taraba, Yobe, Zamfara, Bayelsa, Ebonyi, Gombe, Jigawa, and Kebbi, failed to secure any foreign investments.
The Northeastern region, plagued by a decade-long insurgency led by Boko Haram, was particularly hard-hit.
Experts argue that the ongoing insecurity crisis has deterred investors from considering this area, resulting in a devastating impact on the region’s economy.
Professor Akpan Ekpo, an economist at the University of Uyo, attributed the decline in investments to Nigeria’s macroeconomic challenges, emphasizing that foreign investors are wary of crisis-ridden areas.
Gabriel Idahosa, Deputy-President of the Lagos Chamber of Commerce, pointed to Nigeria’s post-military constitution, which centralized economic power, as a factor in the investment decline.
Furthermore, a United Nations report highlighted Nigeria as the African country most severely affected by economic losses due to terrorism, accounting for 89% of the total $109 billion lost to terrorism in Africa since 2007.
As Nigeria grapples with these economic challenges, the imperative for addressing insecurity and revisiting economic policies becomes increasingly evident.
