Nigeria eyes $5bn increase in FDI within 3 years

Nigeria, a country with a $400 billion GDP, has been grappling with dwindling foreign direct investments (FDIs) in recent years. Despite the country's enormous economic potential, FDIs have not been pouring in as expected, largely due to unfavorable policies and a lack of consistency in government economic strategies. In a bid to reverse this trend and bolster the economy, Nigeria aims to attract $5 billion in FDIs by 2025. Tilewa Adebajo, CEO of CFG Advisory, shed light on the necessary policy changes and long-term planning required to achieve this goal. Adebajo emphasized the importance of FDIs for a country's economic growth, highlighting the distinction between productive investments and portfolio investments in capital markets. He noted that Nigeria has mainly witnessed expansion investments from existing companies rather than significant new foreign investments due to policy hurdles. One sector that has been particularly impacted by regulatory obstacles is oil and gas. Over the years, Nigeria's oil production has declined, highlighting the urgent need for policy reform to attract investments and revitalize the industry. Adebajo stressed the critical link between investment policies and attracting capital, pointing out that the ease of doing business, security concerns, and policy inconsistencies have deterred FDIs. Discussing missed opportunities, Adebajo acknowledged that Nigeria has tremendous economic potential but lacks the right policy framework and leadership to fully harness it. He highlighted successful initiatives like diaspora remittances, where incentives have spurred increased inflows, underlining the need for government policies that facilitate, rather than hinder, economic growth. Regarding the $5 billion FDI target by 2025, Adebajo expressed confidence in its achievability based on past FDI levels. He pointed out that Nigeria had previously attracted much higher FDI amounts, indicating room for growth. However, he emphasized the crucial role of consistent and sustainable long-term development planning, a facet where Nigeria has historically fallen short. In conclusion, Adebajo underscored the correlation between robust policies, long-term planning, and FDI inflows, emphasizing the importance of governmental stability and foresight in fostering economic development. As Nigeria charts its path towards increased FDIs and economic prosperity, the efficacy of its policy reforms and commitment to sustained planning will be pivotal in achieving its ambitious investment goals.