In the first half of 2024, 32 Nigerian state governors spent a staggering N69.71 billion on travel costs, both locally and internationally. Despite these huge expenditures, most states failed to attract any foreign investments, raising concerns about the effectiveness of these costly trips.
A report by Sunday PUNCH revealed that travel expenses of government officials, including governors, saw a significant rise between the first and second quarters of 2024. From N34.63 billion in the first quarter, the figure nearly doubled to N69.71 billion in the second quarter. However, despite the lavish spending, only Lagos, the Federal Capital Territory (FCT), and Ekiti state managed to attract any capital investments during the period.
According to the National Bureau of Statistics’ Capital Importation Report for the first quarter of 2024, Lagos accounted for the majority of foreign investments, receiving $2.78 billion, which represents 82.42% of the $3.38 billion total capital imported into the country. Abuja followed with $593.58 million, while Ekiti state received a mere $0.01 million. The remaining 34 states did not attract any capital importation during this period.
Governors’ Expensive Trips Yield No Results
Despite spending heavily on international travels, many state governors failed to secure any foreign investment for their states. Oyo State Governor Seyi Makinde, who topped the list with N11.57 billion in travel expenses between January and June 2024, did not attract any foreign investors. Similarly, Borno State Governor Babagana Zulum and Katsina State Governor Dikko Radda spent N1.96 billion and N1.94 billion respectively on trips but saw no investments in return.
Other state governors who spent significantly on travels include Ekiti Governor, who spent N3.75 billion, Ebonyi Governor with N1.85 billion, and Taraba Governor who spent N6.39 billion. Despite these expenses, none of these states attracted foreign investments.
Expert Opinions on Lack of Investments
Professor Jonathan Aremu, an Economic Community of West African States (ECOWAS) Common Investment Market consultant, attributed the lack of foreign investments in these states to unattractive factors such as insecurity and instability. He explained that foreign investments are “crisis shy” and tend to avoid areas with instability.
“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. Investors want stability and predictability in their investments, particularly, having returns on their investments,” Aremu said.
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Rising Concerns Amid Spending
The huge spending on travels comes at a time when the country is grappling with economic challenges, insecurity, and rising costs of governance. Many citizens and experts are questioning the rationale behind the high travel expenses, especially when these trips have not yielded the desired results in terms of attracting foreign investment.
President Bola Tinubu, who is currently on a two-week vacation in the United Kingdom, has also been criticized for the timing of his trip. While governors such as Makinde, Zulum, and Radda have spent up to 90 days abroad for their annual vacations, many question whether these trips are justifiable given the lack of tangible outcomes for their respective states.
States like Benue, Rivers, and Ogun did not have available data for their travel expenses in the second quarter of 2024, while others like Anambra, Delta, and Cross-River have also seen substantial amounts spent on travel without any corresponding inflows of foreign investments.
The disconnect between the rising travel expenses and the lack of investment is alarming, particularly as the Nigerian government claims to have attracted $30 billion in foreign direct investments. However, the report indicates that these investments have largely bypassed the majority of Nigerian states.
As Nigerians continue to demand accountability from their leaders, the pressure mounts on state governors to justify these expenditures and deliver tangible benefits for their states’ economies.