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.
READ ALSO: Nigeria’s Debt Set To Hit N45trn As Plan To Borrow Additional N6.39trn Emerges
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
CBN Sets POS Maximum Transactions In Fresh Guidelines
The Central Bank of Nigeria has rolled out fresh guidelines for agent banking, known as Point of Sales, across the country.
The apex also in the guidelines pegged daily POS transactions at N1.2 million per agent and N100,000 per individual.
CBN disclosed this in a circular signed by its Director of the Payments System Management Department, Musa Jimoh.
The guidelines further mandate all financial institutions to publish the list of all their POS agents on their website and to display it in their branches.
READ ALSO:CBN Establishes New Unit To Tackle Financial Crime
CBN noted that the guidelines would take effect from April 1, 2026.
“The Guidelines aim to establish minimum standards for operating agent banking in Nigeria, enhancing agent banking to provide financial services and promoting financial inclusion, encouraging responsible market conduct and improving service quality in agent banking operations.
“This circular takes effect from the date of release, while the implementation of agent location and agent exclusivity shall be in effect from April 1, 2026.
“POS agents are restricted to a maximum of N1.2 million per day. Individual customers are limited to N100,000 in daily transactions.
“These limits are intended to curb misuse, enhance financial integrity, and protect consumers within the agent banking framework,” it stated.
Business
Naira Records First Appreciation Against US Dollar At Official Market
The Naira recorded appreciation on Wednesday against the United States dollar at the official market, the first time in three days this week.
The Central Bank of Nigeria’s exchange rate data showed that the Naira strengthened to N 1,470.62 per dollar on Wednesday, up from N1,471.09 traded on Tuesday.
This means that the country’s currency firmed up slightly by N0.47 against the dollar on a day-to-day basis.
READ ALSO:Naira Appreciates Massively Against US Dollar In The Black Market, Highest In 15 Months
Monday and Tuesday, the Naira recorded negative sentiment at the official foreign exchange market.
However, at the black market, the Naira remained unchanged at N1,500 per dollar on Wednesday, the same rate exchanged on Tuesday.
The apex bank data indicated that the country’s external reserves, a determinant of the exchange rates, stood at $42.57 billion as of October 7, 2025.
Business
SEC Warns Nigerians Of AfriQuantumX Ponzi scheme
Nigeria’s Securities and Exchange Commission (SEC) has named AfriQuatum, with a claimed worth of N76 billion, as a Ponzi scheme.
The regulator also urged the public to be cautious about investing with the firm.
SEC disclosed this in a recent statement.
According to the SEC, any person who places an investment or engages with the entity does so at his or her own risk, adding that its operations exhibit characteristics commonly associated with fraudulent Ponzi schemes.
READ ALSO:SEC Warns Nigerians Over AI-generated Investment Scams
“The attention of the Securities and Exchange Commission has been drawn to the activities of AfriQuantumX, which holds itself out as an investment platform trading on and selling cryptocurrency and stocks to investors in Nigeria.
“The Commission hereby informs the public that AfriQuantumX is not registered by the Commission either to solicit investments from the public or operate in any capacity within the Nigerian capital market,” SEC stated.
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