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Tag: FDI

  • Diaspora remittances to Nigeria hit $20bn

    Diaspora remittances to Nigeria hit $20bn

    President Bola Tinubu has disclosed that Diaspora Home Remittances through official channels stood at $20.93 billion in 2024, which is four times the value of Nigeria’s Foreign Direct Investment (FDI).

    President Tinubu said this at the National Diaspora Day (NDD) celebrations and National Merit Award 2025, organised by Nigerians in the Diaspora Commission (NiDCOM) on Friday in Abuja.

    The theme of the celebration was “Optimising Formidable Diaspora Potentials for National Development and Growth”.

    The President was represented by Sen. George Akume, Secretary to the Government of the Federation.

    He lauded the creation of NiDCOM flagship programmes like NDD celebrations, National Diaspora Merit Award, Nigeria Diaspora Investment Summit, Diaspora Mortgage Scheme and Diaspora Data Mapping project.

    According to him, it has become a practice to fellowship with Nigerians in the diaspora at the presidential diaspora town-hall meetings during the presidential official trips outside the country.

    “It is gratifying to note that we have celebrated the achievements of our diaspora annually on July 25th, many of whom are our Ambassadors at large uplifting the image of Nigeria in their host countries.

    “Nigerians in the diaspora are also actively investing in our healthcare, agriculture, education, Information and Communication Technology (ICT), housing and real estate, sports, transportation, oil and gas and other sectors.

    “This is commendable and in our enlightened self-interest as only Nigerians, both at home and abroad, can develop Nigeria,’’ he said.

    He also said that the NDD celebration has taken a new dimension owing to the inclusion of the national Diaspora merit award by NiDCOM since 2023.

    Speaking earlier, Mrs Abike Dabiri-Erewa, Chairman/CEO of NiDCOM, said the NDD was set aside to recognise and acknowledge the over 20 million Nigerians in the diaspora who are contributing immensely to national development.

    “Our Diaspora are known for hard work, resilience, patriotism, and they are highly productive. They are also barrier breakers and pacesetters in their different fields of endeavour.

    “It, therefore, behoves on us to celebrate our very best, not minding that a few do fall below standard.

    “Since its establishment over six years ago, NiDCOM has had so much to celebrate; this is because the legacy team has sustained the passion and consistency that saw to the establishment of the commission,” she said.

    Dabiri-Erewa said that the commission had successfully hosted NDD merit awards where notable individuals and association who have contributed to the development of the country and their host countries were recognised and honoured.

    “Badagry door of return festival is celebrated in October yearly; to commemorate the Nigerian descendants from the slave trade era and the significance of the ancient city of Badagry during that period,’’ she said.

    Ms Sharon Dimanche, Chief of Mission International Organisation for Migration (IOM) Nigeria, commended NiDCOM for the organisation and success stories in the past years.

    Dimanche said that it underscored the unique role of Nigerian diaspora as a catalyst for inclusive and sustainable development.

    According to her that the Nigerian diaspora has consistently demonstrated resilience, innovation, and patriotism.

    “According to the World Bank, in 2024, global official remittances was 905 billion dollars, with Sub-Saharan Africa receiving 56 billion dollars.

    “Of this, Nigeria recorded a significant inflow of 20.93 billion dollars, an 8.9 per cent increase from the previous year as reported by the Central Bank of Nigeria.

    “These remittances serve as a vital economic buffer, supporting households, education, healthcare and livelihoods across the country,” she said.

    She, however, said that the diaspora’s impact transcended remittances,

    “Nigerian professionals in health, technology, education, arts, finance and public administration are transforming institutions globally while maintaining deep ties to their homeland.

    “This transnational connection represents an untapped wealth of knowledge, skills and networks critical to national transformation.

    “The youth in the diaspora; innovative, digitally savvy and globally connected hold enormous potential to drive entrepreneurship, civic participation, and technological advancement in Nigeria,” she said.

    Nigerians in diaspora reaffirm commitment to national development

    Meanwhile, the Nigerians in Diaspora Organisation (NiDO) Worldwide reaffirmed its strong commitment to Nigeria’s progress and national development on Friday in Abuja at the 2025 National Diaspora Day and Merit Awards celebration.

    This was said by the Coordinating Chairman of NiDO-Worldwide, Mr Chibuzo Ubochi, in a message to mark the day, themed: “Optimising Formidable Diaspora Potential for National Development and Growth.”

    The event, tagged “HYBRID,” is scheduled to hold from July 25 to 26 in Abuja.

    “Today, we join millions of Nigerians around the globe in celebrating Diaspora Day 2025, a day to honour the resilience, patriotism, and contributions of Nigerians living abroad.

    “This is not just a celebration. It is a reaffirmation of our commitment to nation-building and a reminder that wherever we live, Nigeria lives in us,” Ubochi said.

    Ubochi, who also chairs NiDO Europe, advocated for full civic inclusion, including the right of Nigerians in the diaspora to vote.

    “This is not just about fairness, it is about completing Nigeria’s democratic promise. We wear Nigeria in our hearts, and we are advocating for equal citizenship through diaspora voting,” he said.

    He commended the Federal Government under President Bola Tinubu for recognising the vital role of the diaspora in national development, noting that such acknowledgment gave visibility and honour to the decades of service rendered abroad in the name of Nigeria.

    Ubochi also expressed gratitude to the Nigerians in Diaspora Commission (NiDCOM) for its leadership, which he said had elevated the status and global relevance of Nigerians in the diaspora.

  • How we attracted $30bn FDI in 9 months – Tinubu

    How we attracted $30bn FDI in 9 months – Tinubu

    President Bola Tinubu says his nine month-old administration has attracted $30 billion Direct Foreign Investment commitments to shore up the  Nigerian economy.

    Tinubu stated this at the 2023 Leadership Annual Conference and Award on Tuesday in Abuja.

    The event, with the theme “An Economy in Distress: The Way Forward”, was organised by the Leadership Group, publishers of Leadership Newspapers.

    Tinubu, represented by Minister of Information and National Orientation, Alhaji Mohammed Idris, said the Nigerian economy is not in distress, but facing challenging times.

    He explained that the in spite of the challenging situation, the country has attracted unprecedented opportunities to reset the course and build a new and sustainable economy away from the rent-seeking and the waste that was once the order of the day.

    “Since we assumed office in May 2023, we have attracted $30 billion in Foreign Direct Investment (FDI) commitments into the real sectors of the economy, including manufacturing, telecoms, healthcare, oil and gas, and others.

    “Those investments have already started coming into the country. Just a few days ago, I was in Qatar on an official visit, where the Emir assured that a senior government delegation would visit Nigeria after Ramadan.

    “I have asked the Minister of Finance and Coordinating Minister of the Economy to directly interface with the Qatari authorities to ensure that speedy progress is made.

    “The Nigerian economy saw a better than anticipated performance in the last quarter of 2023, growing by 3.46 per cent, compared with 2.54 per cent in the preceding quarter.

    “Capital Importation into Nigeria was up by 66 per cent in Q4 2023, reversing a 36 per cent decline in the previous quarter.

    “In January 2024, the Nigerian Stock Exchange All Share Index (ASI) crossed the 100,000 points mark, its highest ever.

    “There is no one who looks at this data who will conclude that “distressed” is the accurate way to describe the Nigerian economy,” Tinubu said.

    He emphasised that these were the outcomes of ongoing reforms.

    Tinubu, however, said the government was aware of the hardships due to the reform, but assured that a lot of effort and energy were  been made towards alleviating the pains and setting the economy on firm footing.

    “There are incredible opportunities for investment in every sector of the economy, as the Federal Government stabilize our foreign exchange market and macroeconomic indices.

    “I ask for the continuing patience and support of all Nigerians, including the elite that is very well represented in this room today.”

    The President also sought for understanding of the media as government continues the reform of the economy.

    “To the Nigerian media, I urge you to strive to report not only the challenges but also the solutions and the opportunities as well.

    “Ours is a story of a country that is taking the right steps, and feeling the fleeting pains that will come with this course of action. A glorious dawn is indeed assured.

    “Since the removal of petrol subsidies, our imports of petrol have dropped by about 50 percent, which translates to roughly one billion liters of petrol every month, according to the National Bureau of Statistics,” Tinubu said.

    The president added that the revenues accruing to the three tiers of Government; Federal, State and Local had grown by between 50 per cent and 100 per cent since the removal of the petrol subsidy.

    “This means more funds are available to directly impact the lives of Nigerians through investments in critical infrastructure, social security, and other areas.

    “For example, the additional funding we are receiving is going into a new minimum wage for which negotiations have started, between the Federal and State Governments and Organized Labour.

    “I have approved the disbursement of N200 billion, through three new special intervention funds established to support Nigerian businesses.

    “The first is a N50 billion Presidential Conditional Grant Scheme that will provide business grants and loans to traders, food vendors, transport workers, ICT businesses, creatives, and artisans.

    “Verification of all submitted applications is ongoing, and disbursements will commence through the Bank of Industry as soon as this verification is completed.

    “The second is a N75 billion MSME Intervention Fund which will provide single-digit-interest loans to our MSMEs.

    “The third is a 75 billion Manufacturing Sector Fund targeting manufacturing businesses, with selected beneficiaries eligible to access up to one billion Naira each,” Tinubu said.

    Awards were presented to several politicians, companies, technocrats and experts during the annual event.

  • FDI: Tackling poor signaling – By Dakuku Peterside

    FDI: Tackling poor signaling – By Dakuku Peterside

    Nigeria faces unprecedented economic uncertainties and desperately needs to “bend the curve” on most economic indices. Even the optimistic people among us struggle with what to hold onto to defend our slide into economic quagmire. This results from several years of economic mismanagement and the devastating global impact of COVID-19.

    We need urgent economic recovery, and Foreign Direct Investment (FDI) flows are fundamental to support such recovery. We must make a great effort to restore and increase capital inflows through FDI; attracting such capital must be a key  strategy of this government.

    Kofi Annan, the former UN Secretary-General, underscores the importance of FDI when he argues, “Foreign direct investment can be a catalyst for economic growth, job creation, and poverty reduction in developing countries.” This administration understands this, and Mr. President is leading the campaign to attract FDI. He is rolling out the red carpet for global investors to come to Nigeria to invest. However, the result of such an effort is yet to manifest , and some may argue that it is too early to appreciate the outcome. But I assume that although the economic propaganda and narrative, the body language of Mr President, and the economic decisions he has made so far are FDI friendly, the signals coming out of Nigeria are counterintuitive to this effort. And we know that in economic perception, signals matter, sometimes even more than reality.

    Narendra Modi, Prime Minister of India, argues that “FDI is not just about money; it’s about creating an environment that fosters innovation, entrepreneurship, and economic prosperity.” The message from the Nigerian economic environment is antithetical to our FDI drive narrative and calls for capital inflow. We have yet to create an environment that fosters innovation, enterprise, and productivity. This is the anchor for FDI.

    To be fair to the BAT government, it has taken  some measures to boost foreign investment, including tax reforms  at its formative stage , repealing laws that allowed retrospective taxation, overhauling the foreign exchange regime, clearing all FX deficits, and offering incentives.

    These signals, albeit substantial, are poor compared to the competing negative signals emanating from our political economy that global capitalists pay very close attention to. International capital investments are not products of whimsical and serendipitous decisions. They are based on analysing short- and long-term economic facts and realities. No amount of window dressing of the fundamentals would convince foreign investors to come to Nigeria unless core economic facts back our rhetoric. What strong signals are we emitting?

    Our business environment has become so toxic in recent times that we are not retaining FDIs that came in the past. Global manufacturing conglomerates and oil multinational companies are quickly moving out of Nigeria and are not replaced by new ones (Not a peculiarly Nigerian problem, though: Kenya and Ghana – but particularly the former – are facing similar problems!). Nigeria is the second most indebted country to foreign airlines because of non-repatriation of earnings.

    Our foreign exchange regime is still weak, and the value of the Naira is collapsing like a pack of cards. Imagine an investor brought in $1m at the rate of N500 per dollar (N500,000,000} at the beginning of this year and by the end of the year makes a 20% profit (N100,000,000}. If the exchange rate now is N1000 per dollar, the total value of his investment will shrink by 40% ($600k against the original $1m invested}. This volatility will scare most would-be investors, especially investors focusing on the short run. Even at that, the investor is likely to struggle to get FX to repatriate profit or sometimes even import raw materials .

    Poverty and economic hardship have reduced the purchasing power of the people, and demand for non-essential products and services is dwindling. Our micro and macroeconomic environment is harsh and has thrown some erstwhile middle-class Nigerians across the poverty lines. There is no gainsaying; we are the world’s poverty capital, and we have accepted our fate, and nothing measurable has been done about it.

    High inflation and high interest rates are combined to stifle business. We are and have remained a mono-product economy. Nigeria has historically been heavily dependent on oil exports. The lack of diversification in the economy makes it vulnerable to fluctuations in oil prices, affecting investor confidence.

    Politically, we have made some democratic gains, but we are still struggling with the rule of law. A viable business environment thrives when the rules of business engagement are clear and sacrosanct. And when there is a breach, a transparent judicial process ensures justice. However, our judiciary has significantly lost the confidence of many of our citizens and foreign investors. Court processes take forever to resolve disputes.

    Corruption is rampant and has eaten deep into the system. This has led to a high cost of governance and decay in the system. Government officials’ lifestyle is inconsistent with that of those who need support or investment. Nigeria is heavily indebted and has continued to borrow, most painfully, to cover recurrent expenditure and service debts.

    Public and private sector organisations have to deal with the  burden of bureaucracy and red tape. There is a sense of pervasive hopelessness and despondency among the youth, who comprise more than 70% of the population. The paradox is that the high youth population is now a curse rather than a blessing. We have a dearth of highly educated and skilled youths, yet many have “japaed” or are planning to do so. Never in our history have we had this unprecedented exodus of trained professionals in all spheres.

    We have weak institutions, weak infrastructure, and massive insecurity. We have a complex regulatory environment with many bureaucratic hurdles, which has affected the ease of doing business. Starting and operating a company could be more efficient and more investor friendly. Multiple taxation and other unnecessary interference impede business confidence.

    Besides, the state of infrastructure in Nigeria, including transportation, energy, and telecommunications, is disturbing and anti-investment. Infrastructural development is the backbone of business, and investors may hesitate to invest in a country where inadequate infrastructure can hamper business operations.

    The level of insecurity is alarming. Some regions in Nigeria have experienced security challenges, including incidents related to terrorism, secessionist agitations, civil unrest, kidnapping, high-level criminality, and general low-level insecurity. These concerns impact the perceived safety of investments and lead investors to consider more stable environments.

    All these signals mentioned above are powerful and are dousing the poor signals this administration’s effort is putting out. So, we must go back to basics. Addressing these challenges and implementing reforms in governance, infrastructure, and the business environment can help improve Nigeria’s attractiveness to foreign investors.

    The Nigerian government has recognised these issues and has been working on initiatives to promote economic reforms and improve the investment climate. The situation can evolve, and ongoing efforts to address these challenges may positively impact FDI. Let’s continue with the hardcore reforms that will improve our economic outlook in the medium to long term. The sacrifices we make now will reward our posterity.

    Ngozi Okonjo-Iweala, Director General of WTO, argues that, “FDI is not just about capital inflow; it’s about knowledge transfer, technology sharing, and building sustainable partnerships.” We must explore options beyond capital flow and look at knowledge, technology, and skill flows.

    In our globalised world, attracting foreign direct investment is essential for the competitiveness and development of any nation. Foreign direct investment is a vote of confidence in a country’s future economic potential. Therefore, prosperous countries can attract and retain foreign direct investment by providing a stable and business-friendly environment.

    Arun Jaitley, former Indian Minister of Finance, posits that, “The flow of foreign direct investment is like a river – it seeks the path of least resistance, and nations must build bridges, not barriers.” We must create an environment with the least resistant barriers to allow a free flow of capital, talent, and technology.

    Undoubtedly, we know that FDI is a powerful engine for job creation, technology transfer, and economic development and like rainwater, it nourishes the growth and development of the economy. We must send strong signals that we are open for business and create the right environment. Nigeria is a sleeping giant, and when the world sees that we have woken up for business, the FDI will flow freely without theatricals.

  • Delta achieves Special Economic Zone status

    Delta achieves Special Economic Zone status

    Delta State has achieved a Special Economic Zone status, meaning the State is now subject to economic regulations different from what is obtained in other regions of the country and therefore better positioned to attract foreign direct investment (FDI).

    TheNewsGuru.com (TNG) reports the State Governor, Senator (Dr) Ifeanyi Okowa received the Special Economic Zone license from Federal Government through Nigerian Export Processing Zones Authority (NEPZA), in Abuja on Wednesday.

    Speaking while receiving the license, Governor Okowa affirmed the State is ever ready to partner with investors in its vast oil and gas deposits as the country grappled with the economic turnaround.

    Okowa said his administration had provided enabling environment, including peace and security, for businesses to thrive, and assured the sustenance of development in the State.

    He expressed gratitude to the Federal Government for the special license, and also assured that the state government was prepared to synergise with NEPZA, corporate organizations and groups to achieve the essence of the license.

    He commended the management of NEPZA for the support and encouragement toward the realization of the state’s desire to have its resources properly harnessed.

    He disclosed that availability of four seaports and two airports, in addition to necessary infrastructure, including good roads network, was a great impetus for businesses to flourish in the state.

    In his remarks, Minister of Investment, Commerce and industry, Chief Niyi Adebayo, pledged Federal Government’s support to development the special economic zone in Delta.

    Adebayo, who was represented by a Deputy Director in the ministry, Mr S.A. Jaja, said that operation of the economic zone would have multiplier-effect on Delta’s and national economy.

    Earlier, the Chairman, Steering Committee for Establishment of Delta Special Economic Zone, Mr Festus Agas, had traced the track led to the presentation of the operating license to the state, and commended Governor Okowa for the effort.

    Agas, who is Chief of Staff to Okowa, lauded the Federal Government for discerning the potential in Delta and approving the license.

    He also commended NEPZA for the collaboration in seeing the “project” through, and sued for sustenance of the synergy.

  • Leadership is key to unlocking Nigeria’s growth potential – By Dakuku Peterside

    Leadership is key to unlocking Nigeria’s growth potential – By Dakuku Peterside

    Last week, this column discussed the need to rethink productivity and economic growth in Nigeria based on the presentation by foremost Economist Dr Ayo Teriba. This week, we shall look at leadership’s role in engendering a new economic growth model to give our country a leap forward.

    Nigeria’s adverse economic situation is stale news; many have accepted it as a norm that the country will continuously operate below its economic potential. This dire economic reality results from decades of bad economic policies and poor implementations, a chequered political history marred by a military incursion into politics, corruption, and the nascent difficulties occasioned by insecurity, economic sabotage, climate change, global pandemic crises and the Russian/Ukraine crisis. Nigeria is on her knees economically – with a high debt profile, poor revenue from the mono-product (crude oil) that is not even enough to service debts, inadequate foreign reserves, exchange rate crisis that has seen the value of the Naira hammered against other world currencies, high inflation, and high-interest rate.

    The Nigerian economic statistics are gloomy and are causing undue concerns for many stakeholders in the Nigeria project. Nigeria has navigated the murky waters of a financial quagmire for a few decades and has survived it, albeit with substantial economic bruises. The pervading sentiment is that no matter what happens, Nigeria will survive, things will continue as usual, and nothing will change for the better. William Pollard, a leading light in leadership, warned against this state of path dependency when he opined that “the arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” The economic policies and actions that kept us in our current financial quagmire must change for meaningful progress. Nigeria does not need the economics of survival anymore; we need the economics of growth, prosperity, and decent quality of life for Nigerians.

    One fundamental problem that is destabilising our economy is the lack of liquidity. Our negative balance of payment causes this illiquidity because our receipts from exports are far less than the expenditure on goods imported from abroad. This leads to a dwindling of our foreign reserves and a concomitant scarcity of foreign currency to fulfil the needs for the importation of foreign goods and services. This scarcity creates a parallel market that often aids the destruction of the Naira value. The unofficial devaluation of the Naira makes the cost of foreign goods expensive, even more so given the inflation ravaging some of these countries’ posts Covid-19. Local and Imported inflation is the bane of our economy.

    The Nigerian government needs to make more money from oil revenue and taxes and rely less on borrowed funds to cover recurrent and capital expenditures. They need to cover the budget deficits with massive loans from local and international institutions with high-interest rates, and we are still determining how our children will pay for these in the future. Even in an era of increase in the price of oil globally, Nigeria did not benefit maximally from this because of the low volume of oil production and oil theft that stopped Nigeria from meeting its OPEC quota monthly. The non-oil sector contributes little to Nigeria’s income statement because the bulk of these trades is for primary products with little or no extra value added to them in the value chain, and such goods command less revenue in the international market, adversely affecting our income statement.

    Unlocking Nigeria’s growth potential underscores, the need to, among other things, improve its liquidity to stabilise the system and grow the economy. The government must stabilise the exchange, interest, and inflation rates to make meaningful improvements in our economy. The exchange rate regime is a function of our foreign reserve adequacy. The global economy offers two pathways to increase our foreign reserves. It is either you earn more from exports, or you attract more foreign direct investment (FDI). Nigeria has historically preferred the path of exporting more. However, from 2010 to date, global exports have stagnated and even declined because of weak commodity prices. This has affected Nigeria drastically.

    Most countries are relying on a heavy inflow of FDI, which is the economic model chosen by Saudi Arabia, Brazil, India,and others. These countries get more FDI to compensate for shortfalls in exports. Foreign Direct investors will only come to Nigeria with offers to invest equity in public assets and a suitable investment climate. We offered foreign investors an opportunity in the Nigeria LNG project, which yielded substantial investment outcomes. We also did that with the liberalisation of the GSM sector, and we could see the investment inflow.

    The interest rate is another crucial factor in productivity and driving growth. Financial institutions provide interest rates on loans to businesses they need to run or expand their businesses. The higher the interest rates, the less likely companies will borrow for expansion, and the lower the interest rates, the more likely the companies will borrow for operational and growth reasons. Individuals also borrow from financial institutions for personal loans, credit cards, or product loans. The lower the interest rate, the more likely individuals will borrow to purchase goods and services that help businesses expand, mainly if local companies produce the goods and services. Another impact of interest rates is that they often are benchmarked with savings rates. The higher the interest rate on loans, the higher the interest rates on savings. When interest rates on savings are high, people tend to save, but when it is low, people tend to invest, especially in the equity market.

    The exchange and interest rates are monetary instruments influencing the inflation rate. Nigeria needs to stabilise its revenue by expanding its revenue sources, financialising its assets – especially its real estate, infrastructural, and portfolio assets – and maximising value chains across the various productive sectors. It needs to upskill its workforce to have the required skills in the knowledge economy, where knowledge and innovation are the keys to greater productivity. Therefore, human capital development is crucial in unleashing Nigeria’s growth potential.

    Unlocking Nigeria’s growth potential requires new economic thinking by leadership in the public and private sectors. Only good leadership that understands how to open the great possibilities of Nigeria in line with global realities and using tools and resources that work will lift Nigeria from its economic quagmire. Therefore, the 2023 Elections are providing an opportunity for a change in leadership, and Nigerians must look for leaders who understand the destination Nigeria must go to for growth and prosperity and who have what it takes to take Nigerians there. The intention of making Nigeria great is not enough, capacity, and intellectual ability to deliver are critical. The time for transformational leaders in Nigeria is now. Nigeria needs leaders that create a vision and use highly skilled individuals rather than politicians to run the economy of Nigeria. Gather intelligent people and develop and implement ways to improve revenue, optimise assets, and efficiently manage our liabilities.

    It is the responsibility of leadership to provide opportunities and the responsibility of individuals to contribute towards maximising opportunities. The government, on its part, must completely overhaul the economic system and structures to favour liquidity. Just like cash flow is the blood of a business, the government’s fiscal and external liquidity is vital in stabilising the economy. All avenues to improve the government’s income must be explored and used to make the government constantly liquid and viable.

    On top of managing its monetary policies, the government must tighten its fiscal policies to grow the per capita income and increase employment while reducing unemployment . They must create a business-friendly environment where innovation and creativity thrive, and productivity is encouraged. Productivity happens within businesses, and any harsh, volatile, or challenging business environment is tough on companies and hampers their growth. The better the business climate , the more profitable the business is, and the more profitable a business is, the more it attracts FDIs with concomitant expansions and increases both in the balance sheet of companies and their income statements.

    The government should understand the direct correlation between economic disempowerment and socio-political problems in the country. This is especially the case with youths, who, when unproductive for a while, tend to engage in anti-social behaviours, low- and high-level criminality, terrorism, banditry, and secessionism. The government must develop a plan to absorb most of our young people through training in new skills and upskilling them to fit into the new economic reality that rewards innovation and creativity higher than mundane production. They must use fiscal and monetary policies to stabilise consumer and equity prices, enhancing national resilience.

    There is no gainsaying the enormous potential to unleash its growth potentials Nigeria has. For a long time, Nigeria has been a country of potential – potentials that are never actualised. It is only transformational leadership that will transform and overhaul the system. We need this leadership in 2023 more than at any other time. It is foolhardy to do the same thing hoping for a different result repeatedly. We need leadership with the knowledge, capacity, intelligence, and experience to midwife the greatest economic re-engineering the country has ever gone through. All other stakeholders must contribute immensely by improving the value chains within the production sectors, consuming responsibly, and creating superior value that will attract material, financial and human resources from all over the world to Nigeria.

    We look forward to a new Nigeria!

  • Productive people in a productive country – By Dakuku Peterside

    Productive people in a productive country – By Dakuku Peterside

    Recently, I was opportuned to listen to a presentation titled “Nigeria’s Economic Prospects” by one of Nigeria’s foremost Economists, Dr Ayo Teriba. He articulated Nigeria’s current economic woes and situated them in the global context of Post COVID era, European geopolitical tensions, and the resulting energy and commodity price crises. His overarching arguments and postulations are not only germane for a rethink of Nigeria’s economic trajectory but also a breath of fresh air in the current discussions on restructuring Nigeria’s economy for growth and prosperity.

    This essay and a series of others to follow result from the need to rethink our economic structure for productivity, in line with the global trend and current realities and not leave our economy to be decided by happenchance and outdated political economy theories, reminiscent of the industrial revolution era instead of the knowledge economy built more on innovation, than on production.

    Three of the leading presidential candidates for the 2023 general elections are talking of increasing productivity and export as the critical drivers of economic growth. A review of their economic thinking shows that they all believe Nigeria should engage in more agricultural and manufacturing production for internal consumption, import substitution and export.

    They emphasise production and the resultant increase in productivity and employment of human and natural resources as the blueprint for Nigeria’s economic growth. As simplistic and direct as this economic thinking is, the existing economic structure and the ones proposed by the presidential candidates are insufficient to put Nigeria on a growth trajectory.

    Nigeria must leapfrog industrialisation and connect with global innovation and financialization trends to succeed. Financialization is eclipsing industrialization. Financialization, according Thomas Polley of the Levy Economics Institue referring to a process whereby financial markets and institutions gain greater influence over economic policy and outcomes. Productivity in the post- industrial economy goes beyond income-centric optimization of production transactions for largest margins from local and foreign sales that was the hallmark of the earlier stages of industrialization. It is now much more about wealth- centric optimization of tangible and intangible asset portfolios for maximum balance sheet values that is the hallmark of financialization.

    The world has moved away from the past in which global commodity prices (crude oil inclusive) dictated the pace of growth of items on income statements into a new reality in which global equity prices plays the bigger role of dictating the pace of wealth growth on balance sheets. Global wealth has been growing much faster than global income since 2000, and this trend is largely expected to continue in the foreseeable future.

    The mixed outlook of the two global asset prices over the next half- decade underpins those expectations. The IMF projects that commodity prices, including crude oil, currently elevated by geopolitical tensions will fall steadily back to 2021 levels from 2023 to 2027, while we expect equity prices to continue the solid upward trajectory in the last decade through 2027.

    If the asset prices follow the projected paths, global exports could rise by about 50 per cent from US$22.4 trillion in 2020 to US$33.1 trillion by 2027, while FDI stocks could surge twofold from US$41 trillion in 2020 to US$79 trillion by 2027. Over the medium-term balance sheet gains look set to remain three to four times as large as income statement gains.

    It is in this context that it becomes more important for the presidential candidates to say more about what they plan to do about getting a fair share of the growing global pie of global FDI stock into idle public assets in Nigeria that spread across corporate, real estate, and infrastructure.

    We now must define productivity to include innovations that optimizes asset portfolios in addition to those that optimizes output transactions.The transaction model of productivity relies on the quantity and quality of goods and services produced and the revenue generated through internal consumption and export. Global trends now transcend this by embracing asset productivity. Optimizing assets involves unlocking liquidity from publicly owned place-based, space-based, and skill- based assets littered across corporate, real estate, and infrastructure sectors.

    So, instead of relying solely on products and income from agriculture, industry, and service, we should go after the place-based, space-based, and skill-based assets that are needed to generate output in these production-based sectors. Government should allow the inflow of FDI into the innovation sectors of the economy that productive sector rely on to thrive. We see this in Nigeria’s Fintech sector, where small and medium industries attract billions of dollars as FDI. The government should collaborate with the private sector to open other innovation sectors for FDI.

    Saudi Arabia’s exemplifies this trend. The country has historically focused on creating wealth through income-centric optimization production and exports, not caring much about creating wealth through optimization of asset portfolios. But the weakening of global commodity prices since 2014 in the face of strengthening global equity price prompted the country to take steps to financialize its public asset portfolio from 2016.

    It was in this process that it listed ARAMCO in the market through an initial public offering in 2019. The market value of ARAMCO is more than$2 trillion now,making it one of the biggest companies in the world. Considering that Saudi Arabia’s GDP is only about US$850 billion now, it is fair to say that Saudi Arabia’s balance sheet now contributes more to its national wealth and net worth than its income statement.

    We can also see this with American technological behemoth, APPLE. It takes direct control of the upstream/conception and downstream/distribution phases of its value chain where its growing stock of tangible and intangible skill-based, and space-based assets ( including patents, brands, creative designs, and it’s closed digital marketing platform ) differentiates its offerings but outsources the midstream assembling/production stages of its devices, where operating procedures are hard to differentiate, to third parties offshore. Apple is worth over $2 trillion.

    The next is the place-based optimisation. All stakeholders must unlock liquidity by optimising the market value of public spaces, real estate, cities, transit routes, tourist centres, farms, factories, and other physical capital. Government should review its real estate holdings to unlock the liquid value attached to them. It may make sense to commercialise real estate with substantial commercial value due to its location rather than keeping them as government buildings serving a need that count for less.

    For example, the British government moved prisons from inner cities across the UK to more economic locations and repurposed the old sites for redevelopment into luxury residential or commercial real estate as part of their efforts to get the best value from public real estate portfolio.
    Dubai is another example. It developed its real estate market, tourism, and business centres to attract people from around the world to visit, work and live in Dubai. Optimization of Dubai’s portfolio of place- based assets contributes more to its wealth and net worth than than producing and exporting oil. Unlocking the value in place by Amenitizing leisure and leisure activities is essential.

    Optimising spaces also fuels productivity. Companies obtain ownership rights, patents, licenses, connectivity, digital platforms that create significant values for other producers and consumers. Companies like Google, Facebook, Airbnb, Uber are owners of space-based assets that others who wish to produce, sell, or buy cannot do without. They are multi-trillion- dollar companies in equity value and generate huge revenues from the financialization of their spaced-based assets.

    Likewise, optimising skills and knowledge development is an excellent part of productivity. Global skill shortage is fueling an unprecedented wave of talent migration. The Philippines is a leading supplier of seafarers, caregivers, and domestic workers in the world. The culinary skills of the Chinese help to differentiate Chinese restaurants worldwide. We can debate whether diners are paying a premium for the skills or for the products.

    The need for healthcare workers in developed countries is an opportunity to train and export the skills of Nigerian youths to the rest of the world, so also ICT skills .Investors worldwide highly value skills, brands, trademarks, recipes, talents, innovations, and knowledge.

    There is a need for rethinking productivity in Nigeria. The presidential candidates should not only understand the problems of Nigeria and how to solve them, but they should have a sharp vision of the destination they are taking Nigeria to. According to Seneca the Younger, ‘If a man knows not to which port he sails no wind is favourable’. The February 1887 Magazine of American History teaches that ‘You cannot make much of a wind, but you can choose a wind, trim your sails to it, and attain the haven you select by its push and inspiration”.

    Presidential candidates need to tell us more about how they plan to incentivise innovation to unlock growth in both income and wealth. Innovation is a crucial enabler of productivity. Innovation and productivity drive living standards. The capacity to generate innovations is the defining factor of productivity, not necessarily the goods you produce.

  • FDI in Nigeria’s telecom sector hits new high

    FDI in Nigeria’s telecom sector hits new high

    The Foreign Direct Investment (FDI) in the Nigerian telecom sector has picked up again from $212 million by 2018 to reach $930 million, according to recent figures from the Central Bank of Nigeria (CBN).

    TheNewsGuru.com (TNG) reports the Executive Vice Chairman and Chief Executive Officer of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta made this known during an interactive session with newsmen.

    The EVC, while giving accounts of his stewardship as the Chief Telecoms Regulator in the last five years, said in 2015, FDI in the telecom sector stood at $1 billion but declined to $212 million by 2018.

    He, however, noted that through regulatory efforts, the FDI in the sector picked up again reaching $930 million according to recent figures from the CBN.

    Addressing the forum, Danbatta, who was recently reappointed for another five years in office following the expiration of his first term in August 2015, eloquently enunciated his major policy initiatives that have produced record broadband penetration and enhanced the growth in the telecoms sector, especially in the contribution to the nation’s Gross Domestic Product (GDP).

    He also reeled out NCC’s regulatory priority areas for the next five years to include facilitating the attainment of 70 per cent broadband penetration by 2025; consumer protection and empowerment; and consolidation of spectrum trading to ensure maximum and efficient usage of available frequencies.

    Other areas of focus, according to him, will include continuous SIM registration audit to provide security and curtail incidences of banditry, kidnapping, and armed robbery; creation of Emergency Communications Centres (ECCs) in more states of the federation; and execution of the counterpart funding agreements with the licensed Infrastructure companies (InfraCos) to facilitate the digital transformation of the economy.

    Speaking on his achievements in the last five years, Danbatta said that the diligent implementation of NCC’s Strategic Vision Plan (SVP), which focused on the 8-Point Agenda, has helped to lift broadband penetration from 6 per cent in 2015 to 42.02 per cent by July, 2020. The sector’s contribution to GDP increased from 8.50 per cent in 2015 to 14.30 per cent in the second quarter of 2020. In financial terms, Danbatta said the Q2 2020 contribution translates to N2.272 trillion.

    He noted that when he came on board five years ago, 217 access gap clusters were identified in the country affecting 40 million Nigerians without access to telecoms services. “But today, we have reduced the access gap clusters to 114 with 15 million of the 40 million digitally excluded Nigerians now having access to telecoms services. We are committed to addressing the remaining access gap clusters, which are areas outside the frontier of economic viability to ensure the remaining 25 million Nigerians have access,” he said.

    Similarly, Danbatta said on assumption of office, there were 47,000 kilometers of fibre optic cables laid across the country. However, five years after, as a result of regulatory focus, there are now 54,725 kilometers of fibre cables laid across the country through the efforts of some private companies in the sector.

    “In line with the Federal Government’s target, an additional 120,000 kilometers of fibre are being planned over the next four years. In this regard, the NCC is working on last-mile connectivity to different parts of the country through leveraging the 40 terabyte capacity of five submarine cables on the coastal shores of Nigeria,” he said.

    Danbatta pointed out that the licensing of six Infrastructure Companies (InfraCos) to deploy fibre infrastructure across the six-geo political zones will also help to galvanise increased connectivity.

    “This will also bring about a reduction in cost of data from N1000, per gigabyte of data to around N390 with broadband penetration target of 70 per cent to cover 90 per cent of the population within the next five years as contained in the new Nigerian National Broadband Plan (2020-2025),” the EVC said.

    Danbatta, however, noted that “we cannot have pervasive broadband with only 37,000 4G-enabled Base Transceiver Stations (BTS) of the total 50,000 BTS currently in the country. We need more next-generation technologies as we work through addressing infrastructure deficit occasioned by the spike in data usage in the country.”

    In this regard, the EVC said the 5G trial conducted by the NCC in 2019 and its eventual safe deployment in the country will increase data speed and boost efficiency in service experience for the consumers.

    Danbatta also talked about the various consumer-centric initiatives his leadership has put in place to strengthen consumer protection and empowerment in the last five years. These include the declaration of 2017 as the Year of the Consumer, the introduction of the Do-Not-Disturb (DND) 2442 Short Code, the introduction of the NCC toll-free Number 622; the stringent provisions of Subscriber Identification Module (SIM) Registration Guidelines, issuance of direction on forceful subscription and data roll-over, among others.

    Such initiatives, according to Danbatta, also include the constitution of a multi-sectoral committee on e-fraud, revision of the consumer complaints, and service level agreements (CC/SLA) for prompt resolution of consumer complaints by the Mobile Network Operators (MNOs).

    He reiterated NCC’s commitment towards delivering on its mandate of ensuring the quality of service to the consumers, driving investment, and boosting healthy competition in the industry as enshrined in the Nigerian Communications Act (NCA), 2003.

    Danbatta lauded the role of the media in the reportage of the telecom sector over the years and urged the practitioners to continue to be objective and constructive in their coverage of the activities of the Commission and that of its licensees.

  • FDI inflow to Nigeria hit $23.9bn in 2019 – NBS

    FDI inflow to Nigeria hit $23.9bn in 2019 – NBS

    The value of Foreign Direct Investment (capital importation) into Nigeria stood at $3.8 billion in fourth quarter of 2019, National Bureau of Statistics (NBS) confirmed in latest capital importation data released yesterday.

    The amount represents a decline of 32.42% when compared to the 3rd Quarter of 2019, and a 77.67% increase when compared to the 4th quarter of 2018.

    Similarly, the total value of capital importation in 2019 stood at $23.9 billion, compared to $16.8 billion in 2018, representing a growth of 42.69% between the two periods.

    On investment classes, the largest amount came through Foreign Portfolio Investment (FPI), followed by Other Investment and Foreign Direct Investment (FDI).

    On sectoral basis, shares dominated with the highest amount of capital imported in Q4 2019.

    The United Kingdom emerged as the country of origin with the highest amount of Capital Imported while Lagos is the destination with the highest amount of Capital Importation.

    By bank, Stanbic IBTC Bank Plc. emerged as the bank with the highest amount of capital imported into Nigeria in Q4 and full year 2019.

    President Muhammaudu Buhari’s administration has initiated series of legislations to encourage investment flow into Nigeria.

    While attending the seventh Tokyo International Conference on African Development (TICAD7) last year, he assured foreign investors of good returns.

    The President said he looked forward to welcoming prospective investors in Nigeria’s power and renewable energy, petrochemical and gas, maritime (shipping and ports), automobiles, mining, agribusiness, healthcare and pharmaceuticals, ICT and railway sectors.

  • CBN tackles IMF on forex restriction policy over FDI inflow

    Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, has opposed the observation put forth by the International Monetary Fund (IMF) that restrictions placed by the federal government on foreign exchange on some items was impeding the flow of Foreign Direct Investments (FDIs) into Nigeria.

    The CBN chief made his stance known on Sunday while briefing journalists on the sidelines at the 2019 IMF and World Bank Annual Meetings in Washington DC., the United States.

    He said that the IMF stance on FDIs being affected by goods that could be produced locally as a result of forex was false, pointing out that, “If you are a foreign direct investor that is interested in doing business in Nigeria, I will say instead of you facilitating the import of these items into Nigeria, we want you to come and produce it in Nigeria.”

    Making his disagreement with the global lender clearer, Mr Emefiele said that the Nigerian market was large enough to accommodate investment that will bring about returns, noting that, “Nigeria is a market of over 200 million people. So, bring your investment plans and equipment, come and produce those items in Nigeria, you will make your profit and take your dividend out of the country. So, I disagree with the IMF position.”

    The restrictions placed on 43 items by the federal government received criticism by the IMF last week when the agency’s Divisional Chief, Research Department, Oya Celasun, told a news conference on the World Economic Outlook at the meetings that the policy was holding back FDIs into the Nigerian local economy.

    He said the decision to restrict forex access and shut the official foreign exchange window for the importation of the banned 43 items would protect Nigeria’s foreign reserves, as well as the nation’s economy.

    According to him, the policy was introduced to stimulate the domestic economy and enhance domestic production and protect local industries from undue foreign competition and take-over.

    But Celasun said the policy was working to the contrary, pointing out that Nigeria’s growth has been weak, even as he gave hope that growth would pick up next year with support from the agricultural sector, which will enable the country to spend more on priorities, such as social safety and infrastructure.

    “There is need for the strengthening of the banking system and unified exchange rate system. Foreign exchange restrictions have also been distorting the public and private sector decisions and holding back investment.

    “Therefore, strengthening the banking sector resilience and continued stronger structural reforms, especially in infrastructure, power sector and broader governance, are critical.” He said.

    However, this was met with opposition by the apex bank chief who said the policy was put together to serve Nigeria’s best interest.

  • Nigeria to seek global support to combat terrorism, increased FDI – Onyeama

    Nigeria to seek global support to combat terrorism, increased FDI – Onyeama

    Minister for Foreign Affairs, Geoffrey Onyeama has said that the Nigerian Government would use the Forum of the UN General Assembly (UNGA) to seek global support fighting terrorism and increasing Foreign Direct Investments (FDI).

    Onyeama made this known on Tuesday in Abuja during a Pre-UNGA briefing with newsmen stating the expectations of the Nigerian government during the high level summit from Sept. 17 to Sept. 30.

    According to Onyeama, Nigeria would take advantage of its position as President of the 74th UN General Assembly to project the country and articulate priorities of the country, what t seeks to achieve and areas for global support.

    He said that President Muhammadu Buhari will be lead the Nigerian delegation which would include Members of his cabinet and some Ministries, Departments and Agencies (MDAs) to ensure Nigeria have the best technical resources.

    Onyeama listed other priority issues of the country to be discussed at the summit to include: issues of Peace and Security, the Sustainable Development Goals (SDG ) which covers socio-economic, education, humanitarian issues regarding child’s right.

    Other issues are: poverty eradication, illicit financial flows, recovery of stolen assets,

    “More strategically as a country, it is an opportunity to project our country as an important member of the international community.

    “And having the Presidency of the General Assembly is something that also gives us that higher visibility and great influence.

    “We would also want to use that to push agenda of importance to us as a country, our fight against corruption, repatriation of foreign loots, engaging with other countries.

    “In our quest to successfully deliver on SDG objectives that cover our social economic challenges, terrorism, and countering violent extremism.

    “Is also something we would want to maintain at the highest levels of global priorities because it is our major challenges.

    “Mr President has just come back from a summit of ECOWAS Heads of States on Peace and Security in the West Africa Sub-region so this is still a challenge that we are facing.

    “And it is important to use that opportunity to keep the global community engaged and supportive of what we are doing, our fight.

    “And also taking the opportunity to a greater United Nations for support in that fight against terrorism but also in the global conflicts taking place in Africa,” Onyeama said.

    Onyeama said tha Nigeria has been very present in Peace Keeping interventions across the continent under the framework of the African Union.

    He added that with such large troops from Nigeria it was important to have financial and other support from the UN peace keeping division.

    The Minister said that President Buhari would also be having bilateral meetings with some Heads of States and engaging with different personalities like Bill Gates to discuss attracting FDI.

    Onyeama explained that the Foreign revenue streams of the Country expected hence, the need to diversify to attract more Foreign Direct Investment into our country.

    He said that Nigeria would also be soliciting support of the UN to recharge the Lake Chad which has shrunk by 90 per cent and has affected the source of livelihood of people living across the region.

    Onyeama added that Nigeria will use the opportunity to canvass support for a number of Nigerians and the country itself vying for certain international position, engage with countries to try to get their support so that the nation can deliver on the positions.

    “For instance, Nigeria is keen to be elected into a category of the International Maritime Organisation.

    “We didn’t make it the last time round, so we are persisting this time and with the challenges that we have, maritime challenges, we feel that it is important that we be on the governing bodies for regulating maritime issues.

    “We are also vying for a position on the World Heritage Committee of UNESCO, we are vying for a seat under part two on the International Civil Aviation Organisation Council.

    “We have a candidate that we are pushing to be on the Committee Against Torture, we also have a candidate that we are pushing for election to the United Nations Committee on Elimination of All Forms of Discrimination Against Women.

    “So, we will be taking advantage of our presence there during the General Assembly to also lobby for these positions,” Onyeama said. (NAN)