VenturesNow

Worst in 10 years: 24 of Nigeria’s 36 states got zero FDI in 2021

Published

2 years ago

April 5, 2022

Nigeria’s official data source, the National Bureau of Statistics (NBS) has released data (Pdf), which indicated that 24 out of 36 states of the Nigerian Federation got no Foreign Direct Investment (FDI) in the year 2021.

The West African country only managed to generate a total of $698.7m from Foreign Direct Investments in 2021 which according to the NBS was the lowest the country recorded in 10 years.

As expected, Lagos state, the commercial capital of Nigeria got the highest FDI in the year in review with 5,823.36, followed by Abuja which recorded 833.40

A foreign direct investment (FDI) is a purchase of an interest in a company by a company or an investor located outside its borders. Generally, the term is used to describe a business decision to acquire a substantial stake in a foreign business or to buy it outright in order to expand its operations to a new region. It is not usually used to describe a stock investment in a foreign company.

The 24 states that attracted not FD1 in 2021 are Adamawa, Bauchi, Bayelsa, Benue, Borno, Cross River, Ebonyi, Edo, Enugu, Gombe, Imo, Jigawa, Kaduna, Katsina, Kebbi, Kogi, Nasarawa, Niger, Ondo, Plateau, Sokoto, Taraba, Yobe and Zamfara.

Table showing 2021 quarterly Foreign Direct Investments (FDI) figures across Nigerian states.

FDI is one of the three major types of investments and a critical source of capital inflow into a country. Other sources include foreign portfolio investment, foreign loans, and trade credits, among other investments.

Companies considering a foreign direct investment generally look only at companies in open economies that offer a skilled workforce and above-average growth prospects for the investor. Light government regulation also tends to be a strong factor. Nigeria to a large extent is lagging behind on those metrics, with policy inconsistency that characterized the Nigerian economy like the closure of the Nigerian land borders in August 2019, the economy cannot be said to be “open” and neither is Nigeria’s skilled workforce above average.

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Nigeria’s Bola Tinubu presents N27.5 trillion 2024 budget of ‘Renewed Hope’

Published

12 hours ago

November 29, 2023

Ifeoluwa Dada

Exactly six months after his inauguration, Nigeria’s President, Bola Tinubu, presented the N27.5 trillion 2024 budget proposal to a joint session of the 10th National Assembly in Abuja.

The president said, “The 2024 Appropriation has been themed the Budget of Renewed Hope” with intentions to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security.

“Defence and internal security are accorded top priority. The internal security architecture will be overhauled to enhance law enforcement capabilities and safeguard lives, property, and investments across the country,” he said in his presentation on Wednesday.

The budget also prioritizes human development, with particular attention to children, whom he called “the foundation of our nation”.

The Nigerian government under Tinubu has sought to stabilize the country’s economy with two major policy actions: the removal of petrol subsidies to address fiscal wastage, and the unification of the exchange rate. Although the policies have yet to positively impact standard of living, Tinubu insisted that the Nigerian economy had performed well in 2023 despite the challenges, and the government continued to meet its obligations.

According to him, “an aggregate revenue of 11.045 trillion naira was projected to fund the 2023 Budget of 24.82 trillion naira with a deficit of about 6.1% of GDP. However, as of September 30, the Federal Government’s actual aggregate revenue inflow was 8.65 trillion naira, approximately 96% of the targeted 8.28 trillion naira”.

Tinubu commended the legislature for its swift consideration and passage of the 2023 Supplementary Appropriation Bill and the 2024–2026 Medium-Term Expenditure Framework and Fiscal Strategy Paper last week. He noted that their “prompt action underscores your devotion to economic development and to the greater welfare of our people.”

Nigeria’s main revenue source is oil, but earnings have been affected by its industrial-scale theft, and dwindling global oil prices. However, it produced 1.49 million barrels of oil per day last month, the most in nearly two years, after increasing its output by 60,000 barrels per day.

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Nigeria’s Tinubu to present N27.5trn budget on Wednesday

Published

2 days ago

November 28, 2023

Ifeoluwa Dada

The Nigerian President, Bola Tinubu, will present the 2024 Appropriation Bill to a joint session of the country’s bicameral legislature, the National Assembly, on Wednesday.

The bill is an increase from the N26.01tn earlier considered by the council, according to the Minister of Budget and Economic Planning, Abubakar Bagudu, who confirmed the approval to State House correspondents after the close of FEC’s weekly meeting presided over by President Tinubu.

In addition, the minister disclosed that the government had projected N18 trillion in revenue for the fiscal year 2024. Bagudu stated that more information regarding the appropriation bill would be made public on Wednesday when the president brought it before a joint session of the National Assembly.

The minister stated that the Council was currently reviewing the Medium-Term Expenditure Framework, which was approved by the National Assembly.

Bagudu said, “Equally, the Federal Executive Council approved the 2024 Appropriation Bill and the presentation of such to the National Assembly by His Excellency, Mr. President.

“The bill has an aggregate expenditure of N27.5tn which is an increase of over N1.5tn from the previously estimated, using the old reference prices.”

He added, “The forecast revenue is now N18.32tn which is higher than the 2023 revenues, including that provided in the two supplementary budgets. Equally and commendably, the deficit is lower than that of 2023. Details of the Renewed Hope Budget will be announced by Mr. President when he makes the presentation to the National Assembly”.

With two key policy initiatives—halting the fiscal bleeding caused by petrol subsidies, and unifying the exchange rate—the Nigerian government, led by Bola Tinubu, has attempted to stabilise the economy of the nation. With its currency value declining even further and the cost of living rising sharply, the results have not been favourable.