Foreign investments

NESG urges FG and states to attract more foreign investment

Nigeria Economic Summit Group (NESG)

FIRS

The Nigerian Economic Summit Group (NESG) has called on federal and sub-national governments to step up their efforts to attract foreign direct investment (FDI) by focusing on specific economic areas where Nigeria has a competitive advantage.

The private sector think tank said adopting priority sectors of the national economy for productivity and job creation would help Nigeria attract more foreign direct investment.

Nigeria is currently experiencing capital flight due to key economic factors including supply chain disruptions orchestrated by external shocks – Russian-Ukrainian war, commodity prices – and domestic insecurity in property.

Read also: In Q2, 32 states fail to attract investment – ​​NBS

NESG Board Member Mr. Kyari Bukar made the call during a pre-summit meeting between NESG and the Federal Ministry of Finance, Budget and National Planning on Monday.

Bukar said Nigeria’s growth has been driven by sovereign debt-led growth, and “now is the time for Nigeria to look at a different model that can help our country take a different approach to attracting investment. “.

National Director of Development Alternatives Incorporated (DAI), Dr Joe Abah, said the ability to hold politicians to account is an essential part of democracy, noting that some of the investment attraction issues include the issue of quality of governance at all levels of government. and the lack of an effective merit-based system.

Abah said it was necessary to improve national security, strengthen safer transportation systems and focus more on the ease of doing business to enable and strengthen the country’s progress in attracting foreign investment.

He urged the introduction of cash incentives in corporate regulatory environments to help Nigerian states become more transparent.

Abah reiterated the importance of reforming business investment centers, noting that the public sector has a vital role in facilitating and coordinating investment promotion.

For his part, Director General of Private Enterprise Promotion, Dr Muda Yusuf, said there is a need to change the mindset of the public sector, from wanting to dominate the investment space to see the private sector as partners and change the ideological disposition. government actors who do not believe in a free market economy.

An investment professional, Ms Yewande Sadiku, said that “we tend to underestimate the importance and efficiency of the judicial system and the various challenges, including corruption and bureaucracy, that investors face. to bring goods out of Nigeria and obtain and transfer foreign currency”.

She noted that only a few companies can produce what they need in Nigeria without importing and that investors need the ability to import and export foreign currency and need stability in the macroeconomic and political environment to plan for the future.

She revealed that portfolio investors have helped maintain visibility in the capital market, although research has shown that a considerable percentage of investors start out as portfolio investors before moving into direct investing when ‘they have a favorable business environment.

In addition, the Special Advisor to the President for Economic Issues, Office of the Vice President, Dr. Adeyemi Dipeolu, who was represented by the Special Assistant to the President for Finance, Office of the Vice President, Ms. Louisa Chinedu, noted that bureaucracy is a major problem. problem encountered in public governance, noting that the public service has a significant influence on the decision of investors.

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