In the third quarter of 2023, a substantial $655.4 million in capital importation flooded into the coffers of six Nigerian states and the Federal Capital Territory (FCT), Abuja.
This surge in foreign investment was primarily concentrated in Lagos, FCT, Abia, Ogun, Akwa-Ibom, and Ekiti throughout the months of July, August, and September.
The distribution of capital importation reveals a stark contrast, as the remaining states failed to register any significant financial inflows during this period. Notably, Lagos led the pack with an impressive $308.83 million, closely followed by the FCT with $194.66 million, Abia securing $150.09 million, and Ogun garnering $1.00 million. Akwa Ibom and Ekiti received $65,000 and $12,750, respectively.
According to a report by the National Bureau of Statistics (NBS), Abia’s capital importation of $150.09 million in Q3 2023 marked a significant uptick, surpassing its 2020 figure of $56.07 million.
It is crucial to understand that capital importation involves the inflow of capital from abroad to bolster a country’s investment, trade, and manufacturing activities.
Nigeria’s cumulative capital imports for the first three quarters of 2023 reached an impressive $2.82 billion. The breakdown indicates $1.13 billion in the first quarter, $1.03 billion in the second quarter, and $654.65 million in the third quarter.
In light of these developments, Daily Trust quoted BudgIT’s lead researcher, Orji Uche, cautioning against overreliance on federal allocations.
Uche highlighted that only 19 states could sustain their expenditures through internally generated revenue and federal allocations.
Given the uncertainties surrounding the oil market, Uche emphasized the need for state governments to diversify and ensure financial sustainability, focusing on essential sectors of the economy rather than solely relying on federal allocations for recurrent expenditures.
