Kogi State is among the 32 states in Nigeria that failed to record any capital importation in the first nine months of 2024, according to the latest Capital Importation report released by the National Bureau of Statistics (NBS).
The report revealed that while Nigeria’s total capital importation reached $7.1 billion in the first three quarters of 2024—significantly higher than the $3.9 billion recorded in 2023—the distribution of these inflows was largely concentrated in a few states, leaving Kogi and others without any foreign investments.
A Troubling Trend for Kogi State
The lack of foreign investment in Kogi State underscores broader challenges in attracting capital inflows to states outside key economic hubs like Lagos and the Federal Capital Territory (FCT). Despite its strategic location and natural resources, including abundant mineral deposits, Kogi has struggled to draw foreign investors.
Key Highlights from the NBS Report
- Only five states—Lagos, Ekiti, Enugu, Kaduna, and the FCT—recorded capital importation in 2024.
- Lagos led with $4.6 billion, followed by the FCT with $2.39 billion.
- States like Bayelsa, Rivers, and other oil-producing regions, along with Kogi, recorded no inflows during this period.
Implications for Kogi State
Kogi’s inability to attract capital inflows reflects systemic issues, including:
- Inadequate Infrastructure: Poor road networks, unreliable power supply, and limited connectivity deter potential investors.
- Investor Confidence: Security concerns and perceived governance challenges contribute to a lack of confidence among investors.
- Underutilization of Resources: Despite its vast mineral wealth, including iron ore, limestone, and coal, Kogi State has not optimized its resources to attract investment.
What Needs to Be Done
To reverse this trend, the Kogi State government must take proactive steps, including:
- Improving Infrastructure: Develop critical infrastructure to support industrial growth and investment.
- Enhancing Security: Strengthen security measures to create a safe environment for businesses.
- Streamlining Regulations: Simplify regulatory processes to make the state more attractive to investors.
- Promoting Investment Opportunities: Highlight Kogi’s rich resources and strategic location to potential investors.