₦airaland Forum

NIGERIA’S ‘feeding bottle’ federalism is coming home to roost. The country has been running a unitary system disguised as federalism, and the negative effects of centralisation have begun to show economically.

Today, most states are not economically viable. Worse, they do not seem to be working hard to be. Why would they? Apportionments come from the Federation Accounts Allocation Committee monthly. With the naira grossly devalued, the volume of the allocations keeps increasing. This is why most states have abandoned creative ways to raise revenue and attract investments.

According to the latest capital importation data by the National Bureau of Statistics, 32 out of the 36 states and the FCT attracted zero capital importation (foreign investment) in the first nine months of 2024, up from 27 states in 2023.

The data shows that only Lagos, Ekiti, Enugu, Kaduna and the FCT recorded capital importation in the period under review.



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Lagos attracted the highest sum, $4.6bn, followed by the FCT, which recorded $2.39bn imported in the first nine months of 2024.

Ekiti received $120,000 and $100,000 in the third quarter of the year and $10,000 each in the first and second quarters, respectively.

Enugu and Kaduna only attracted capital inflows in Q3 with $180,000 and $1.95m respectively.


The figures show that the states did poorly in attracting FDIs and most of the governors’ foreign tours have yielded nothing.

Many essential elements need to be available to attract FDIs. Investors place their investments wherever they feel they could profit and achieve bountiful ROIs. They look at the security of their ventures. So, it is almost improbable for any investor, especially an international one, to invest in an insecure place where bandits, insurgents and kidnappers reign.


So, for most investors, the security of their investments is number one. Second is the issue of poor infrastructure. The woeful infrastructure is driving away potential investors from the states. Poor infrastructure raises costs. In several instances, investors build roads, set up power plants and organise security. All this raises the cost of production.

The issue of multiple taxation remains. There are always too many taxes for an investor to pay and harmonising the taxes and even reducing them considerably could help attract investments.

Thus, instead of investing in troubled climes, an international investor will go where there is little headache.

Therefore, instead of embarking on ceaseless international trips that yield no dividends, state governors should focus more on creating an enabling environment for foreign investors.

The governors should take advantage of the New Electricity Act to improve power supply in their domains. States should attract robust investments through the Clean Energy Initiatives from different parts of the world.


Governors should collaborate with the Federal Government to make the states more secure through proactive policing. They should make state police possible in conjunction with the state assemblies, the National Assembly, and the centre.

Solid infrastructure is key. There should be a good network of roads in the states and the FCT to encourage international investors. Many states have impassable roads in their rural areas and for those considering agricultural investments, states must work on good roads for the seamless evacuation of products.

Probity and accountability should be embraced at all levels of government. High-level corruption does not encourage investors. Bribing government officials to obtain one licence or the other is a turn-off for them.

States should concentrate on areas where they have competitive advantages to attract investors.

Punch Editorial Board

https://punchng.com/states-and-paucity-of-fdi/

It's a terrible situation, but I think it's a reflection of the total economic outlook of the whole country. Investors always look at the economy holistically, not looking at one state or region because there are no boundaries between states.

Let the FG do their work to develop every state, not trying to use apartheid to spread developments.

Thank you.

"Governors should collaborate with the Federal Government to make the states more secure through proactive policing. They should make state police possible in conjunction with the state assemblies, the National Assembly, and the centre."


Just let the state policing start, many of these security challenges will be stopped because the cross border banditry will almost stop. Every state can spend money to secure their states, not waiting on the weak FG to help them.

PresidObi:
"Governors should collaborate with the Federal Government to make the states more secure through proactive policing. They should make state police possible in conjunction with the state assemblies, the National Assembly, and the centre."


Just let the state policing start, many of these security challenges will be stopped because the cross border banditry will almost stop. Every state can spend money to secure their states, not waiting on the weak FG to help them.

Changing clothes does not mean changing character.

Criminals from each state make up the federal police. Those criminals will make up the police force each state. The criminality or brutality will continue because the same set of people with the same set of mindset are still in charge.

State police is not the solution. The solution is simple but the government will not be willing to apply that solution because those in power benefit from the criminality of the police.

If the police cannot stop crime in a state, don't retire or transfer the commissioner of police in the state, sack him. If a police station cannot prevent crimes in a community or at least apprehend the perpetrators of the crime, don't retire or transfer the DPO, sack him. This will purify the police force, whether it is federal police or state police.

immortalcrown:
Changing clothes does not mean changing character.

You've said it all.

immortalcrown:
Changing clothes does not mean changing character.

Criminals from each state make up the federal police. Those criminals will make up the police force each state. The criminality or brutality will continue because the same set of people with the same set of mindset are still in charge.

State police is not the solution. The solution is simple but the government will not be willing to apply that solution because those in power benefit from the criminality of the police.

If the police cannot stop crime in a state, don't retire or transfer the commissioner of police in the state, sack him. If a police station cannot prevent crimes in a community or at least apprehend the perpetrators of the crime, don't retire or transfer the DPO, sack him. This will purify the police force, whether it is federal police or state police.

All you said in your last paragraph is what a state police will do. Thanks for making my points for me.

PresidObi:
All you said in your last paragraph is what a state police will do. Thanks for making my points for me.

You will be disappointed. This will be like the arguement had over SIM card registration being an end to kidnapping and fraud. It will also be like the arguement had over BVN being an end to money laundering. Who will control the recruitment of officers in state police? The same politicians that use cultists as thugs during elections? Do you think those politicians will leave those cultists that are their puppets and go for diligent people that will represent the interest of the public? Those politicians will definitely recruit their puppets for the protection of their selfish interests.

immortalcrown:
You will be disappointed. This will be like the arguement had over SIM card registration being an end to kidnapping and fraud. It will also be like the arguement had over BVN being an end to money laundering. Who will control the recruitment of officers in state police? The same politicians that use cultists as thugs during elections? Do you think those politicians will leave those cultists that are their puppets and go for diligent people that will represent the interest of the public? Those politicians will definitely recruit their puppets for the protection of their selfish interests.

Action beats inaction anyday. Let's start state police and weed out the few bad points about it, than this present insecurity. Are you enjoying insecurity? Are benefiting from it?

If your answer is no, let's try something new. Giving example with sim registration and BVN and NIN which the same inefficient and ineffective federal government bungled is a very bad example, and you are still making my points for me. Thanks.

PresidObi:
Action beats inaction anyday. Let's start state police and weed out the few bad points about it, than this present insecurity. Are you enjoying insecurity? Are benefiting from it?

If your answer is no, let's try something new. Giving example with sim registration and NIN which the same inefficient and ineffective federal government bungled is a very bad example, and you are still making my points for me. Thanks.

Vigilante groups in various states of Nigeria prove you wrong. Politicians and wealthy people use those vigilante officers against innocent and poor members of the communities. State police cannot be different as long as the leaders are the same.

immortalcrown:
Vigilante groups in various states of Nigeria prove you wrong. Politicians and wealthy people use those vigilante officers against innocent and poor members of the communities. State police cannot be different as long as the leaders are the same.

Again you are wrong. The vigilante in my community is working very well and we dont have much crimes. Where we get problems is when they catch a criminal and send to the police, they will somehow release the criminal behind their backs.

Same federal police scattering the work of the vigilante. Keep helping me make my points. You're doing well.

PresidObi:
Again you are wrong. The vigilante in my community is working very well and we dont have crimes. Where we get problems is when we catch a criminal and sent to the police, they will somehow release the criminal behind their backs.

Same federal police scattering the work of the vigilante. Keep helping me make my points. You're doing well.

Story.

immortalcrown:
Story.

Come on, let's finish this debate.

PresidObi:
Come on, let's finish this debate.

I decided to pause because not everything is to be said online. I know what vigilante officers have done in some places.

We will still be alive and on this forum by the time state police is actualized. Then, we shall know whose prediction is right.

immortalcrown:
I decided to pause because not everything is to be said online. I know what vigilante officers have done in some places.

We will still be alive and on this forum by the time state police is actualized. Then, we shall know whose prediction is right.

We will see.