Katsina, Rivers, Delta, 25 Others Failed To Attract Fresh Foreign Investments -Investigation

A total of 28 States did not attract any fresh foreign investments within the first six months of this year, investigations have revealed.

Nigeria has been badly hit by the negative impact of the Coronavirus pandemic which had resulted into loss of jobs, loss of incomes to businesses and households as well as decline in productivity.

During the first six months of this year, investments inflow had recorded a massive decline over what was attracted in the corresponding period of last year.

For instance, the economy attracted a total investment inflow of $7.15bn in the first six months of this year based on figures obtained from the National Bureau of Statistics.

A breakdown of this figure showed investors made a total investment of $5.85bn in the first quarter of this year.

However, due to the Coronavirus pandemic which resulted into restrictions in movement, the economy recorded a huge decline of $4.56bn in the second quarter with inflow dropping to just $1.29bn.

Further analysis by THE WHISTLER showed that only nine states out of the 36 States and the Federal Capital Territory were able to attract investments during the period.

Analysis of the data showed that Lagos with $6.26bn led in terms of investment inflow, while the Federal Capital Territory followed with $852.11m.

In the same vein, Sokoto attracted investment inflow of $2.5m, Ogun $12.7m, Niger $11.82m, Kaduna $1.98m, Anambra $1.16m, and Akwa Ibom $0.24m.

The 28 states that failed to attract fresh investments are Abia, Adamawa, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Ekiti, Enugu and Gombe.

Others are Imo, Jigawa, Katsina, Kebbi, Kogi, Kwara, Nasarawa, Ondo, Osun, Oyo, Plateau, Rivers, Taraba, Yobe and Zamfara.

According to a survey conducted by the Nigerian Investment Promotion Commission, ten out of the 36 States in Nigeria currently have no functional Investment Promotion Agency.

The survey stated that 26 States representing 72 per cent have a functional IPA with a mandate to promote investments, adding that six states representing 17 per cent have the function situated within a Ministry, and four states representing 11 per cent  have it in government parastatals.

The Executive Secretary of NIPC Ms Yewande Sadiku, had while revealing the outcome of the survey called on state governments to  set up functional investment promotion agencies to attract both local and Foreign Direct Investments.

Yewande said the move was to afford NIPC a scientific basis that can be used to enhance  working relationships with states and provide the necessary support to sub national investment promotion mechanisms.

She said, “In reality, according to our records, existing structured SIPAs are not up to 26 but we continue to encourage the state governments to set up these agencies backed by legal instruments.”

Based on the survey, the highest  investment attraction in states include agriculture, manufacturing, education, solid minerals development and construction or real estates.

The  Commission advised States Investment Promotion Agencies  to leverage on its database and its several reform programmes  to improve their efficiency and effectiveness in investment promotion drive.