Why States Like Abia, Delta, and Ogun Miss Out on Investments

Despite Nigeria recording a remarkable increase in foreign capital inflow in 2024 over 200% compared to the previous year, a staggering 32 states failed to attract any significant portion of it. 

Among them were Abia, Delta, and even Ogun, which previously enjoyed a measure of investor interest. The question is: why did these states miss out, even as overall investment numbers soared?

The reasons are not hard to find. Experts and observers point to a combination of deep-rooted challenges insecurity, failing infrastructure, policy inconsistencies, and weak economic planning that continue to make these states unattractive to foreign investors.

Insecurity remains a major barrier

Security remains a critical concern for investors. States battling insurgency, banditry, or high rates of kidnapping are naturally avoided by international businesses. 

While some of these issues are more prevalent in the north, the fear of violence or disruptions affects perceptions of many other regions as well. For investors looking to protect capital, unstable territories are a non-starter.

Infrastructure gaps make operations difficult

In places like Abia and Delta, inadequate infrastructure from poorly maintained roads to unreliable electricity and weak internet connectivity adds to the cost of doing business. 

No matter how strategic a state’s location may be, if goods can’t move easily and communication is slow, foreign investors simply move on to more efficient locations.

Bureaucracy slows things down

The process of starting or running a business in many of these states is burdened by bureaucracy. Red tape, inconsistent policies, and weak governance systems often result in long delays for permits, unclear tax structures, and difficulties in resolving disputes. 

Foreign businesses used to faster processes find it hard to justify investing in such environments.

Missing economic vision

Another major issue is the lack of clear economic planning and investment promotion. Many of the sidelined states have no dedicated investment offices or clear strategies to attract and retain investors. 

There are few, if any, visible economic clusters like the tech scene in Lagos or industrial zones in the FCT that offer reassurance to global players looking for existing structures to plug into.

Transparency and data problems

In the world of international finance, data is everything. Many of the affected states suffer from poor record-keeping and weak financial transparency. This makes it difficult for foreign investors to assess risk, project returns, or even understand the regulatory environment.

A pattern that’s getting worse

The lack of investment is not new. For some states, like Zamfara, Kebbi, and Bayelsa, the dry spell stretches back years. Between 2019 and 2024, they attracted zero dollars in foreign capital. 

This suggests that the issues keeping investors away are not short-term or accidental, they are structural and require intentional policy reform.

Meanwhile, other states thrive

While most of the country struggled, states like Lagos, Abuja, and Akwa Ibom continued to dominate the capital importation charts. Their advantages? Strong infrastructure, better security, clearer policies, and active investment promotion efforts. 

These states have become default destinations for foreign businesses looking to enter the Nigerian market.