Nigeria’s first-quarter 2024 investment landscape presents a stark contrast, with some states thriving while others are left behind. Lagos, the economic hub, attracted $2.7 billion in capital importation, while the federal capital territory and Ekiti received significantly less. However, a concerning trend emerged: 31 states recorded zero capital importation, highlighting the need for a more inclusive investment strategy.
The overall foreign direct investment (FDI) figure for Q1 2024 stood at $119 million, a decline from the previous quarter. This dip raises questions about Nigeria’s attractiveness to global investors. The banking and telecommunications sectors experienced significant drops, attributed to regulatory changes, economic uncertainties, and industry dynamics.
ShopRite’s recent exit from Nigeria underscores the challenges faced by businesses, including unfavorable conditions and financial constraints. To attract and retain foreign investors, Nigeria must address these issues and implement sector-specific reforms.
To enhance its appeal, Nigeria can leverage its natural resources, high growth rates, and large domestic market. The government’s approved Investment Policy and currency devaluation are steps in the right direction. However, infrastructure deficits, bureaucracy, corruption, security concerns, currency volatility, and inconsistent policies must be addressed.
Nigeria offers key sectors for investment, including oil and gas, agriculture, technology, and infrastructure. While challenges exist, thorough research and due diligence can help investors navigate the market successfully.
Nigeria’s investment landscape requires a more inclusive approach, addressing disparities and challenges. By implementing strategies and reforms, the country can unlock its investment potential and attract sustainable foreign investment.
