Tagged the pandemic year, 2020 was still rosy for 11 states in Nigeria as Foreign Investors from across the world came to put their monies in the biggest Africa’s economy.
Although Foreign Direct Investment (FDI) dropped by 59.7 percent, Abuja, the Federal Capital Territory (FCT) and 10 states received inflows.
Equities supplied the largest capital inflows, the United Kingdom was the main sources of capital investment for the year under review.
- Akwa Ibom
What is FDI?
FDI means Foreign Direct Investment and it simply means cross-border direct investment from foreign countries or individuals in another economy.
For instance, Mr Swesmith, a U.S citizen who came to establish a mining industry in Osun State, Nigeria, is involved in foreign investment. It is an FDI for the host state and country (Osun, Nigeria).
Which States Receive The Bulk Of FDI In Nigeria In 2020?
According to data by the National Bureau of Statistics or NBS, Nigeria witnessed the sum of $9.7 billion capital inflow in 2020 compared to $24 billion that was witnessed in 2019.
Below is how the investments were distributed among the 10 states and the FCT:
|States||Volume of FDI for 2020|
|Akwa Ibom||$1.05 million|
Geopolitical analysis of FDI in Nigeria in 2020
Using geopolitical zone to analyse the investments, only two states from southwest: Lagos and Ogun received foreign investments for the year.
Three states from the Northwest region Kaduna, Sokoto, and Kano made the list while only one Northeastern state (Adamawa) received FDI.
In the South-south zone, only Akwa Ibom State made the list; while Anambra and Abia from the Southeast made it while Niger and Abuja represented the Northcentral zone.
What happened to 26 states that received zero FDI?
Although, foreign direct investment flows to Africa was projected to decline between 25 percent and 40 percent, some states in Nigeria are known for wholly depending on the monthly allocation from the Federal Government, even before the pandemic broke
The COVID-19 further complicated their issue. So during 2020, the 26 states that received zero FDI according to NBS are:
- Cross River
What are the states doing?
Before now, we’ve seen the inauguration of investment promotion agency e.g KADIPA, OSIPA among others to sell the investments opportunities in their state.