Nigeria’s economic divide deepened in 2024, with 32 of its 37 states failing to attract foreign investments in the first nine months of the year, according to the National Bureau of Statistics (NBS). This marks a troubling rise from 27 states in 2023, underscoring persistent regional disparities in capital inflows.
Foreign capital inflows reached $7.1 billion between January and September 2024, nearly double the $3.9 billion recorded in 2023. However, this overall growth has been concentrated in Lagos and the Federal Capital Territory (FCT), which jointly accounted for 98% of the year’s investments.
Lagos and FCT Dominate Foreign Investment Inflows
Lagos retained its status as Nigeria’s economic hub, attracting $4.6 billion, while the FCT secured $2.39 billion. Smaller contributions came from Ekiti ($120,000), Enugu ($180,000), and Kaduna ($1.95 million).
In stark contrast, oil-producing states like Rivers and Bayelsa, alongside resource-rich regions such as Zamfara and Gombe, failed to record any capital inflows, despite their strategic economic potential.
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“The dominance of Lagos and the FCT highlights a systemic imbalance,” said financial analyst Kemi Ajayi. “It’s a sign of regional neglect and limited investor confidence in many parts of the country.”
Sharp Quarterly Decline Raises Concerns
Despite the annual growth in capital importation, quarterly figures reveal a troubling decline. Foreign investments dropped from $2.6 billion in Q2 to $1.2 billion in Q3 2024—a sharp 52% contraction.
Experts attribute the decline to rising insecurity, poor infrastructure, and inconsistent policies. “The absence of inflows in resource-rich states like Rivers and Bayelsa is alarming,” noted economic researcher Ibrahim Musa. “It’s a wake-up call for policymakers to address the root causes of this disparity.”
Uneven Growth, Broader Implications
The lack of capital inflows in 32 states highlights deeper governance and economic challenges. Regions with untapped resources, such as oil and agriculture, remain sidelined, while Lagos and the FCT’s infrastructural advantages keep them ahead.
“The concentration of investment in a few states risks widening the development gap,” warned development economist Chinyere Okonkwo. “A balanced approach is needed to unlock the potential of neglected regions and build investor confidence across Nigeria.”
