This seems to be the season of dearth of good news for Nigeria. In almost all areas (security, economy, politics, social justice, etc.), it is about the news that disturbs and disturbs. Recently, the National Bureau of Statistics (NBS) released its report on the import of capital into the country for the four quarters of 2022 and, as usual, a It’s bad news. The report showed that the value of foreign currency in the country fell by 20.5 percent per year, from $ 6.7 billion in 2021 to $ 5.33 billion in 2022. subnational when drawn. For example, only a quarter (9) of the thirty-six states of the union and the Federal Capital Territory (FCT) attracted some form of foreign investment by 2022. The unfortunate result of this It shows that the 27 subnationals did not take the table. in the way of the influx of new foreign capital during the period under review, without the care of foreign investors. This situation is not good for a country that is struggling at all levels of government with domestic revenue and a shortage of foreign currency. It’s a bad trend that needs to be fixed immediately.
It should be noted that one state, Lagos, attracted 68 percent of the value of the country’s total import in 2022. from $2.21 billion to $3.6 billion in the same period. In addition, it is a matter of concern that of the 27 states that are neglected by foreign investors in 2022, eight have not been able to attract foreign investments in the last four years (2019 -2022). The damning report from the NBS is throwing away what many of the governors have given themselves. They used limited state resources in the name of attracting foreign investors. Of course, they need to keep the huge amount of money they spent on fruitless tours below the cost of foreign currency. It is sad that many governors prefer to be global rather than trying to provide a suitable environment for investments that is often marked by the ease of doing business.
Although the Federal Government says it is working hard to improve the ease of doing business in the country, only a few of the subnationals have done well in that regard. However, foreign imports are a measure of the value of new investments that flow into a country’s economy over a period of time. And most importantly, its size shows the level of confidence of foreign investors in the country’s economy. Because the owners of the capital, whether foreign or domestic, think and never invest based on opinions, the capital will flow to areas of safety and high returns. The assumption is that these conditions are suitable for the flow of capital to each location. However, security, high taxes and business failures are real problems that are against the will of many investors with large portfolios and real intentions to invest in the country. And this is likely to continue unless governments at all levels can think and think about solving the problems related to the ease of doing business and, more importantly, to improve the security situation in the country.
The Nigerian Ambassador to Mexico, Mr. Adejare Bello, has this to say about Nigeria’s declining attractiveness to foreign investors: “Restoring security in the country is a must for real estate investment. Investors want it. Mexico will invest heavily in the economy of Nigeria but for the security situation in the country. The delegation receives frequent questions from investors about the areas of cooperation between the two countries but All these efforts to attract foreign investment are being hindered by the threat of security. Nigeria’s attractiveness as an investment destination. The fact that many states, especially in the North where instability has been declared, is reflected in the list of subnationals that do not include the foreign investment in 2022 showing the negative impact of security on foreign inflows. Money does not always flow to areas that lack security.
We encourage all member states to make a real effort and take serious action to increase their attractiveness as an investment destination. They need to do this by improving the ease of doing business and tackling security issues in their various locations.
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