The Business NG - August 06, 2025

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BusinessNG Editorial Focus — August 6, 2025
Rethinking Nigeria’s Investment Playbook

Nigeria may have posted a remarkable $12.3 billion in foreign capital inflows in 2024, but the glaring truth lies in the details: 32 states attracted zero investment. Abuja’s unexpected surge to $5.6 billion, displacing Lagos, only sharpens the contrast — an economy centralised and failing to democratise growth.

This uneven capital concentration underscores the urgent need for subnational governments to become serious players in the investment race. States must reform ease-of-doing-business frameworks, improve infrastructure, and actively court investors, rather than relying solely on Abuja.

In the same vein, NAICOM’s new powers to clamp down on fraud signal a long-overdue reckoning in Nigeria’s insurance sector. Analysts are right — only the strong will survive. With regulatory teeth now sharper, digital transformation should follow swiftly.

Meanwhile, FirstHoldco’s profit troubles amid rising non-performing loans reinforce the case for stricter risk management in the financial services space. If Nigeria must sustain its oil boom and record gains, then diversification, investor trust, and subnational competitiveness must be more than headlines.

For a country as large and resource-rich as Nigeria, this lopsided growth is not just inefficient — it is dangerous. The time for structural rebalancing is now.