NEWS
14 States Burn N21bn On Foreign Trips With Zero Foreign Investments
In the past three years, a total of 14 state governments have allegedly expended at least N21.04bn on foreign trips, yet none of them has managed to attract foreign investments successfully.
The states includes; Bauchi, Bayelsa, Benue, Borno, Cross River, Ebonyi, Edo, Gombe, Imo, Jigawa, Nasarawa, Taraba, Yobe, and Zamfara
Despite the influx of $14.85bn from foreign investors into Nigeria between 2021 and the third quarter of 2023, these states have failed to secure a share in the foreign investment pie.
Between 2021 and 2023, a breakdown of expenses on foreign trips by several states reveals Bauchi spending N3.81bn, Bayelsa N1.99bn, Benue N1.33bn, Borno N1.73bn, Cross River N663.16m, Ebonyi N1.01bn, Edo N1.77bn, Gombe N32.09m, Imo N541.23m, Jigawa N1.10bn, Nasarawa N541.26m, Taraba N2.52bn, Yobe N1.24bn, and Zamfara N2.77bn.
Surprisingly, despite these expenditures, there is no tangible result or foreign investments to show for the funds, according to data extracted from state budget performance reports obtained from Open Nigerian States.
It’s worth noting that not all states provided complete budget performance reports, with some only covering two quarters in certain instances.
Kebbi is notably absent from the list of states receiving foreign direct investments during the reviewed period, and unfortunately, there is no available data on the amount spent by the state on foreign-related trips.
The overall absence of foreign investments in these states aligns with a broader decline in investments across the country, attributed to concerns related to insecurity and other prevailing issues during the same period.
The World Bank opined, “Net FDI inflows are negative, reflecting net withdrawals of equity by foreign investors. FDI and FPI flows into Nigeria do not compare favourably with similar economies of the world, reflecting difficulties with FX availability, security concerns, and other structural challenges in recent years.”
Several states mentioned in this report, including Zamfara, Jigawa, and Nasarawa, have been grappling with the scourge of banditry in recent years.
In Zamfara, for example, banditry has become pervasive, affecting almost 14 local government areas.
The situation has led to the abandonment of over 70% of farmlands in the state, with farmers fearing attacks by bandits.
Highlighting the impact on investments, in 2022, the Managing Director of Zamfara State Investment Cooperation, Dr. Anas Hamisu Lawal, pointed out that insecurity was a major factor hindering the attraction of investments into the state.
Lawal said, “The first question they always ask is the security situation in the state..They are willing to invest whenever the security situation improves.”
In 2022, David Olofu, the Benue State Commissioner for Finance, emphasized the significant impact of insecurity on states’ ability to attract investors.
He said “It is obvious that insecurity prevented many states from attracting investors in 2021. How many investors did the Federal Government attract?
“How will investors come even when citizens are not safe? How will investors come when citizens cannot themselves invest in their place?”
In the same year, Governor Godwin Obaseki of Edo State announced a strategic focus on sectors such as technology, agriculture, and entertainment to attract investors to the state.
Despite these efforts, the state has not recorded any foreign investments in the past three years, according to data from the National Bureau of Statistics (NBS).
In 2021, Lawrence Ewhrudjakpo, the Deputy Governor of Bayelsa State, disclosed that Governor Douye Diri was utilizing his foreign trips to attract investors, aiming to enhance the state’s economy.
He said, “We believe that we have procedures, and the governor deserves the attention he deserves to give to investors so that investors are brought to our state as no system that is not interacting with any other system can be very effective. What makes an economy a viable economy is the external investment into the economy.”
The mentioned states continue to face a dearth of foreign investments.
Discussing this situation, Professor Akpan Ekpo, a specialist in Economics and Public Policy at the University of Uyo, explained to The PUNCH, “They are not importing capital for two reasons. First, they don’t have potential investors who will do that. Secondly, there is insecurity in the country. Those things are not fertile ground for investments.”
An ECOWAS Common Investment Market consultant, Professor Jonathan Aremu, added, “It’s simple. It’s because they don’t have attractive factors.
“The factors that attract foreign investment are not available in those states. One thing about investment is that it is crisis shy.
“Investment doesn’t go to places where there are crises. Why? Because investors want stability and predictability in their investments, particularly, having returns on their investments.” he added
President Bola Ahmed Tinubu has expressed optimism about Nigeria’s economic trajectory following the release of the third-quarter Gross Domestic Product (GDP) report by the National Bureau of Statistics (NBS).
The report revealed that Nigeria’s GDP grew by 3.46% in Q3 2024, an improvement from the 3.19% recorded in the second quarter, signaling continued recovery and growth amidst economic reforms.
He described the development as a sign that his administration’s reforms are yielding results while reaffirming his commitment to building a $1 trillion economy by 2030.
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In a statement released by his Special Adviser on Media and Public Communications, Sunday Dare, President Tinubu expressed optimism about the country’s economic prospects but acknowledged that more work remains.
“I am excited by the latest report from the National Bureau of Statistics that our economy grew in the third quarter more than last quarter and even beyond projected estimates,” Tinubu said. “While I welcome this development, the latest figure also shows the much work that needs to be done. We won’t rest until Nigerians feel the positive impacts in their pockets and experience a better living standard.”
The President reaffirmed his administration’s pledge to achieve a $1 trillion economy by 2030, emphasizing that an upcoming rebasing of Nigeria’s GDP in 2025 would highlight structural changes and pave the way for shared prosperity.
“Once the economy is rebased by early 2025 to capture its dynamism and record significant changes that have occurred in different sectors, the country will be on its way to shared prosperity,” he stated.
Tinubu also pointed to proposed tax reforms as a critical tool for driving equity and inclusive growth. He highlighted plans to ease the tax burden on small businesses and tackle the “headquarters effect,” where states housing corporate headquarters disproportionately benefit from tax revenues.
“The proposed tax reforms demonstrate our resolve to reduce the tax burden on small businesses and promote equity,” Tinubu said.
The President reiterated his commitment to ensuring that economic growth translates into tangible improvements in the lives of Nigerians, stressing that his administration remains focused on creating opportunities and reducing poverty across the country.
In a summit in Fiuggi, Italy, G7 foreign ministers are meeting for two days to discuss a variety of global challenges, including the recent arrest warrant issued by the International Criminal Court (ICC) for Israeli Prime Minister Benjamin Netanyahu.
Italian Foreign Minister Antonio Tajani, who is hosting the conference, stated on Monday that he does not expect difficulty in reaching a consensus on the matter.
“It’s not an immediate and actual problem. I don’t think Netanyahu will come to Italy or anywhere else,” Tajani told Corriere della Sera, downplaying the potential significance of the arrest warrant.
The ICC issued arrest warrants on Thursday for Netanyahu, recently dismissed Israeli Defense Minister Yoav Gallant, and Hamas military leader Mohammed Deif, following allegations of war crimes connected to the ongoing Gaza conflict.
While Israel’s allies have criticized the decision, ICC member states are expected to uphold the warrants, despite ongoing debates about how to address Netanyahu’s case.
Along with the Middle East crisis, the G7 ministers will also discuss key global issues such as the war in Ukraine, the potential impact of a Donald Trump re-election, and the growing tensions surrounding Taiwan, which China considers part of its territory.
This summit, the final G7 foreign ministers’ meeting of the year, comes as Italy holds the G7 presidency until the end of December, making it a critical moment for the group to align on these significant global concerns.
The Nigerian government is pushing ahead with new borrowing plans to fund its 2024 budget deficit, even as several federal agencies report exceeding their revenue targets.
During a presentation at the Senate Joint Committees on Finance, National Planning, and Economic Affairs, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, defended the need for additional loans.
He stated that borrowing must be “productive and efficient” and based on Senate approval to ensure proper budget funding.
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Minister of Budget and Economic Planning, Senator Atiku Bagudu, echoed this position, noting that the ₦35.5 trillion 2024 budget includes a ₦9.7 trillion deficit. According to Bagudu, borrowing is necessary to address this gap.
Despite the government’s borrowing plans, key agencies presented strong revenue performances that raised questions about the necessity of additional loans.
The Economic and Financial Crimes Commission (EFCC) Chairman, Ola Olukoyede revealed that the EFCC has recovered over ₦197 billion in 2024.
He stated, “If the government works hard and derives the requisite collection from International Oil Companies (IOCs), the country would have enough to fund the budget.”
Also the Nigeria Customs Service Comptroller General, Bashir Adeniyi announced that Customs exceeded its ₦5.09 trillion target for 2024, collecting ₦5.352 trillion.
Adeniyi projected ₦6.3 trillion in revenue for 2025, with plans to increase targets by 10% annually for 2026 and 2027.
The Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer, Mele Kyari reported that NNPCL surpassed its ₦12.3 trillion revenue projection for 2024, generating ₦13.1 trillion. For 2025, the company aims to remit ₦23.7 trillion into the federation account.
Additionally, the Federal Inland Revenue Service (FIRS), Chairman, Zacch Adedeji confirmed that FIRS exceeded its revenue targets across various tax components.
Biztellers reports that the Senate had on Thursday, approved President Bola Tinubu’s request for a ₦1.77 trillion ($2.2 billion) loan to partially finance the 2024 budget deficit.
The decision followed a report from the Senate Committee on Local and Foreign Debts, chaired by Senator Wammako Magatarkada.
Deputy Senate President Barau Jibrin presided over the voice vote that secured the loan’s approval. The request, submitted earlier in the week, is part of a broader external borrowing plan tied to Nigeria’s fiscal strategy.
The loan request has drawn sharp criticism from opposition figures and public commentators.
Former Vice President Atiku Abubakar called the government’s borrowing plans “bone-crushing” and harmful to Nigerians.
“These @officialABAT’s loans are bone-crushing to Nigerians and bringing insufferable pressure on the economy, especially when they are not properly negotiated and utilized,” Atiku wrote on his X (formerly Twitter) account.
He accused the government of prioritizing corruption over development, adding, “It is concerning that the voracious appetite for these humongous loans is powered by corruption and not for infrastructure and development needs.
A report by BudgIT, a budget watchdog, has disclosed that the 2024 Budget is a mess because of the level of pork associated with it.”
Atiku also criticized the National Assembly, labeling it “an accomplice once more” in enabling excessive borrowing.
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