Business
Heavy Criticism For FG As 24 States Lose Foreign Investments
The Catholic Bishops’ Conference of Nigeria, the Sultan of Sokoto, Alhaji Abubakar Sa’ad lll- led Jamaatul Nasril Islam, some state governments and the Manufacturers’ Association of Nigeria have taken a swipe at the Federal Government over its failure to address the rising insecurity in the country.
The groups stated this on Monday as killings and other forms of insecurity took a toll on investments in the country with foreign investors shunning 24 states in 2021.
Earlier on Monday, the National Bureau of Statistics released data, which indicated that Nigeria generated a total of $698.7m from Foreign Direct Investments in 2021.
According to data from the NBS, the FDI generated in 2021 was the lowest the country recorded in 10 years.
FDI is one of the three major types of investments and a critical source of capital inflow into the country.
Other sources include foreign portfolio investment, foreign loans, and trade credits, among other investments.
NBS defines FDI as an investment whereby the investor has some control or a significant degree of influence on the management of a domestic enterprise.
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It notes that the FDI occurs when the investor has enough equity in the enterprise to entitle them to 10 per cent or more of the voting rights in that company.
A breakdown of FDI in Nigeria over the last 10 years shows that in 2012, FDI stood at $2.60bn, it declined to $1.27bn in 2013 but rose to $2.27bn in 2014.
FDI fell again in 2015 to $1.41bn; it fell further to $1.04bn in 2016 and to $981.75m in 2017.
Further analysis of data from the NBS revealed that the FDI rose again to $1.19bn in 2018 but dropped by $256m to $934.34m in 2019.
The latest capital importation report from the bureau stated that the FDI fell by $332m to $698.78m in 2021 from $1.028bn in 2020.
24 states attracted $0 foreign investments
The report also revealed that 24 states in the country failed to attract any foreign investment last year.
These states 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.
Also, 10 out of the 24 states failed to attract foreign investments in the last three years.
The states are Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Kogi, Plateau, Taraba, Yobe and Zamfara.
Manufacturers blame insecurity
The Chairman, Infrastructure Committee of MAN, Ibrahim Usman, said that aside from the COVID-19 pandemic that affected a number of companies abroad, there was the issue of insecurity plaguing the country.
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He said, “Since the COVID-19 pandemic, a lot of the companies that invest abroad have been affected by the pandemic. That is a major cause. Secondly, the insecurity in the nation has continued to go unabated. Nobody wants to invest in a country where there is so much insecurity. Investments thrive only where there is peace and security.”
Issue of foreign exchange, policy somersault make investment in Nigeria risky – MAN
Usman also said that the lack of stable power supply is affecting the productive sector, which is meant to attract foreign investments.
“Also, the availability of electricity is directly related to the advancement in terms of investments. People normally invest in the productive sector. The productive sector cannot operate without adequate reliable, affordable electricity. That’s another major cause. We haven’t made the stride we are supposed to have in terms of electricity supply. The Nigerian electricity supply industry is still at the lowest point,” Usman said.
He added that there was also the issue of foreign exchange and lack of consistent policies, which had made investing in the country highly risky.
Usman added, “Also, there is the issue of foreign exchange. A lot of times we do policy somersault. The government can suddenly come up with a new policy that discourages investors. There must be consistency in policymaking because investors plan 10-20 years ahead, and sudden changing policies can affect their investments.”
Exchange rate affecting business – LCCI
Also, the Deputy President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, identified three factors responsible for the steady decline in Nigeria’s FDI.
According to him, the major factor is the unpredictability of Nigeria’s foreign exchange market and the devaluation of the naira.
He explained that foreign investors were sceptical of investing in Nigeria because the value of their returns would have declined in the future due to the naira devaluation.
“Since 1990, the value of the naira has been on the decline and projection in the near future is not showing any significant difference,” he said.
Idahosa, who is a chartered accountant, noted that investors were also reluctant to invest in a country where the cost of doing business is high. He explained that the high cost of electricity in Nigeria, inefficient port and rail systems were undoing Nigeria and its quest for FDI.
“Also, our Company Income Tax is among the highest in the world. Most countries have 15-16 per cent of thereabout, but ours is 32.5 per cent. Most investors are going to places where taxes are low and moving to countries where governments are looking at the number of jobs created rather than high taxes,” Idahosa noted.
He urged the Nigerian government to address these challenges urgently to drive FDI into Nigeria.
Also speaking to The PUNCH, the Managing Director of Cowry Asset Management Limited, Johnson Chukwu, said that investors were looking for countries with economic and political stability, and good economic growth.
According to him, the country experienced contracted growth due to the pandemic and is also battling insecurity, which has been discouraging foreign investments.
Chukwu said, “Foreign Direct Investments go into countries with very good investment climate. Among those things that foreign investors are looking for are economic and political stability. They are also looking at the growth of the economy. Prior to last year, the economy contracted in 2020. Although it grew by 3.4 per cent last year, investors were looking at a contraction in 2020.
“Secondly, we see a situation where the level of insecurity is high in the country. This discourages foreign investors.”
The Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, stressed the need for better reforms to strengthen investors’ interest.
He also emphasised the need to address the issue of insecurity plaguing the country.
PUNCH
Business
NNPCL Reduces Fuel Price After Dangote Refinery’s Adjustment
The Nigerian National Petroleum Company Limited has reduced its premium motor spirit pump price on Thursday, according to DAILY POST.
It was confirmed that NNPCL retail outlets in the Federal Capital Territory, Abuja, have reduced their pump price to N890 per litre from N945.
This new fuel price has been reflected in NNPCL retail outlets such as mega station Danziyal Plaza, Central Area, Wuse Zone 4, Wuse Zone 6, and other of its filling stations in the nation’s capital.
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The latest downward review of fuel price in NNPCL outlets represents an N55 reduction in fuel pump price.
“It was reduced to N890 per litre this afternoon, down from N945,” an NNPCL fuel attendant told DAILY POST anonymously on Thursday.
This comes a Nigerian filling station, MRS Empire Energy, on Thursday adjusted their fuel pump price to N885 and N946 per litre, down from N910 and N955 per litre.
The latest fuel price reduction trend is unconnected to Dangote Refinery’s ex-depot petrol price adjustment by N30 to N820 per litre from N850 and the price of crude oil in the international market.
Business
Dangote Refinery Reduces Fuel Price
Dangote Petroleum Refinery has announced a reduction in the ex-depot (gantry) price of Premium Motor Spirit, PMS, commonly known as petrol, by N30, from N850 to N820 per litre, effective from August 12, 2025.
This was disclosed in a statement by the company’s spokesman, Anthony Chijiena, on Tuesday.
The 650,000-barrel-per-day plant said the move is part of its unwavering commitment to national development, assuring the public of a consistent and uninterrupted supply of petroleum products.
READ ALSO:Dangote Refinery Gets New CEO
“In line with our dedication to operational excellence and sustainable energy solutions, Dangote Petroleum Refinery will commence the phased deployment of 4,000 CNG-powered trucks for fuel distribution across Nigeria, effective August 15, 2025,” said Chijiena.
The announcement comes as the refinery prepares to commence direct fuel distribution nationwide. The development is expected to lead petroleum product marketers to reduce their pump prices in the coming days.
In Abuja, the retail fuel price stood between N885 and N970 per litre as of Tuesday evening.
Business
Indian Refiners Abandon Russia For Nigerian Crude, As Dangote Refinery Relies On US
India Refineries have abandoned Russian crude for Nigerian crude, while domestic refiner Dangote Refinery relies heavily on West Texas Intermediate crude from the United States of America.
This followed a recent sanction threat by US president Donald Trump on India over continued patronage of Russian crude.
According to Reuters, industry sources said that Indian Oil Corporation recently bought one million barrels of Nigeria’s Agbami crude for September 2025 delivery in a tender awarded to global trader Trafigura.
Also included are one million barrels of Angola Girassol, one million barrels of US Mars, three million barrels of Abu Dhabi Murban, and two million barrels of Nigerian oil, according to Reuters.
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The report noted that the purchase is part of a broader sourcing spree that has seen Indian refiners secure millions of barrels from non-Russian sources post July 2025.
Meanwhile, Indian refiners secured purchases of Nigerian crude grades; the $20bn Dangote Petroleum Refinery in Ibeju-Lekki, Lagos, is relying on around 60 percent on US and other imoorts to feed its processing units.
Data showed that the refinery imported an average of 10 million barrels in July 2025, saying it was increasingly relying on the US for its feedstock despite the naira-for-crude deal with the Federal Government, which kicked off in October last year.
According to Reuters, the Indian Oil Corp and Bharat Petroleum have bought a million barrels of non-Russian crude billed for delivery in September and October after the US pressured India to halt purchases from Russia.
READ ALSO:
Indian state refiners had been largely absent from the Nigerian crude market spotlight since 2022; they have in the past concentrated on Russian crude amid the Russian-Ukrainian war. However, the Indian refiners paused Russian purchases in late July 2025 after pressure from US President Donald Trump.
On the part of Dangote Refinery, data from commodities analytics firm Kpler showed that in July, US barrels accounted for about 60 percent of Dangote’s 590,000 barrels per day of crude intake, with Nigerian grades making up the remaining 40 percent.
In July, the Dangote refinery’s crude imports surged to a record 590 kbd—driven largely by US barrels overtaking Nigerian supply for the first time—amid ongoing domestic sourcing challenges, Kpler reports.
“While WTI has held a significant share in Dangote’s import slate since March, this is the first time US crude has overtaken Nigerian supply—a shift driven by several factors,” Kpler stated.
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