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Foreign investors shun Rivers, Enugu, Kaduna, 24 others

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Foreign investors shun Rivers, Enugu, Kaduna, 24 others

 Foreign investors shunned 27 states as the value of capital importation  that flowed into the Nigeria’s economy fell by 20.5 per cent to $5.33bn in 2022 from $6.70bn in 2021.

The National Bureau of Statistics disclosed this in its latest Nigerian Capital Importation report for the four quarters of 2022.

According to the NBS data, the 27 states ignored by investors are Abia, Adamawa, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Enugu, Gombe, Imo, Jigawa, Kaduna, Kano, Kebbi, Kwara, Nasarawa, Niger, Ogun, Osun, Rivers, Sokoto, Taraba, Yobe, and Zamfara.

In 2022, only ten states attracted foreign investments.

Lagos took the lead as it outshined others, and the federal capital territory (FCT), to top the list of states that attracted the most investments within the year.

Analysis by TheCable Index shows that the country’s commercial city attracted $3.61 billion in investment, representing 68 percent of the total capital inflow into the country for the period under review.

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This also shows an increase when compared to the $2.21 billion investment recorded in 2021.

The NBS said Abuja (FCT) emerged second top investment destination with $1.63billion — representing 31 percent of the total capital inflow in the country in 2022.

Other states that attracted foreign investments in 2022 are Akwa Ibom ($42.52 million), Anambra ($36.97 million), Oyo ($3.00 million), and Kogi ($2.00 million).

Katsina followed with $0.70 million, Ekiti ($0.51 million), Ondo ($0.20 million), and Plateau ($0.04 million).

Out of 52 countries that invested in Nigeria, the United Kingdom emerged as the top source of capital investment in 2022 with $2.76 billion; followed by South Africa ($428.73 million), Singapore ($420.97 million), and the United States ($286.92 million).

No foreign investment in eight states in four years

Out of the 27 states that were ignored by foreign investors, eight also failed to attract foreign investments in the last four years (2019 -2022).

The states are Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Taraba, Yobe, and Zamfara.

A recent report by the Debt Management Office (DMO) and the NBS also shows that some of the states are accumulating domestic and foreign debt.

According to DMO, apart from Kebbi state, the others had an increase in domestic debt in the last seven years.

Yobe State had a domestic debt growth of +2,247 percent, followed by Taraba at +218 percent, Gombe at +161 percent and Zamfara at +142 percent.

Others are Ebonyi with +139 percent growth in domestic debt, followed by Jigawa at +98 percent and Bayelsa at +42 percent. Only Kebbi State (-4 percent) had a decrease in its domestic debt in the last seven years.

On the internally generated revenue (IGR) front, the data also showed that the above states were doing poorly in generating revenue for their respective states.

The 2021 data released by the NBS (which is the latest) showed that Yobe generated N8.5 billion, which is the lowest among the 26 states; followed by Taraba with N9.6 billion, and Kebbi at N9.9 billion.

Gombe generated N10.6 billion as IGR in 2021, followed by Ebonyi (N13.8 billion) and Bayelsa, an oil-producing state, generated N13.3 billion in 2021. Jigawa and Zamfara generated N16.5 billion and N18.9 billion, respectively.

Nigeria’s Ambassador to Mexico, Adejare Bello, said restoring security in the country was a prerequisite for productive investment.

Bello said Mexican investors were willing to “invest heavily in Nigeria’s economy but for the prevailing security situation in the country”.

“The embassy receives frequent enquiries from investors on possible areas of collaboration between both countries but all these efforts to attract foreign investments are being thwarted by the news of insecurity,” he said.

He added, “Some of the areas the foreign investors have been looking to invest include oil and gas, gold mining, agriculture as well as establishing a partnership with Dangote in the area of fertiliser procurement.”

Foreign investors shun Rivers, Enugu, Kaduna, 24 others

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Tinubu orders creation of single-digit tax system

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Tinubu orders creation of single-digit tax system

President Bola Tinubu has directed a creation of a single-digit tax system with a maximum of nine taxes for a company or an individual.

Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja while speaking with the management team of Guinness Nigeria who paid him a visit.

A statement on Wednesday by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, quoted Adedeji as saying, “The President gave a directive that he wants a single-digit tax in the country, meaning that the maximum number of taxes we will have after the work of the Presidential Committee on Fiscal Policy and Tax Reforms will be nine taxes.”

The statement added that the plan was aimed at having a conducive environment “created for businesses to flourish and grow the economy.”

 

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Naira gains further against dollar

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Naira gains further against dollar

The Naira rose further in the official market on Tuesday, trading at N1,382.95 to the dollar.

According to data from the FMDQ’s official trading portal, the Naira rose by N25.09, or 1.78 percent, from the previous day’s rate of N1,408 versus the dollar.

On Tuesday, total turnover was $245.58 million, up from $222.15 million on Monday.

Meanwhile, at the Investor’s and Exporters (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.

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The News Agency of Nigeria (NAN) reports that the Central Bank of Nigeria (CBN) had, earlier on Tuesday at its 294th Monetary Policy Committee (MPC), raised Monetary Policy Rate (MPR) by 200 basis points from 22.75 per cent to 24.75 per cent.

CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.

Naira gains further against dollar

(NAN)

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CBN jacks up interest rate amid soaring inflation

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CBN jacks up interest rate amid soaring inflation

The Central Bank of Nigeria (CBN) on Tuesday raised the interest rate from 22.75 per cent to 24.75 per cent amid soaring inflation.

Governor of the central bank, Olayemi Cardoso, made this known after the two-day Monetary Policy Committee (MPC) meeting held on Monday and Tuesday.

The country’s latest annual inflation rate jumped to 31.70 per cent from 29.90 per cent for last month, fueled by a continuous rise in food prices.

Cardoso disclosed that the MPC voted to adjust the asymmetric corridor around the MPR at +100 to -300 basis points.

He said the committee voted to retain the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks and adjust the CRR of merchant banks from 10 per cent to 14 per cent.

The committee also voted to retain the liquidity at 30 per cent.

He said, “Members noted the continued rise in headline inflation driven largely by food prices, because of supply shortages, and high cost of Logistics and Distribution.

“The committee, therefore, was of the view that addressing food insecurity is key to containing current inflationary pressures.”

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