Since President Bola Tinubu assumed office on May 29, he has embarked on three major trips with the intent of attracting foreign investments. FESTUS OKOROMADU writes on the gains recorded so far.
Although many Nigerians remain skeptical about the economic fortunes of the country, both admirers and critics of President Bola Tinubu agree that he is determined to convince the global community to invest in the Nigerian economy.
In recent times, the President has coined a new slogan, “The best time to invest in Nigeria is now,” with which he woos investors.
From the streets of New York to Delhi or Paris, Tinubu has consistently propagated the gospel of a new dawn in Nigeria using diplomatic platforms.
The President’s visit to the United States last week to attend the 78th United Nations General Assembly, became another platform for him to advance his commitment in this regard.
During a meeting with United Nations Secretary-General, António Guterres, on the sideline of the UNGA 78, Tinubu highlighted the improved relationship between the developed nations and Africa for the mutual benefit of all.
He was emphatically on the need for policies that will help reshape Nigeria’s economy.
He said: “We are facing the great challenge of scavengers ravaging our lands and oppressing our people on illegal mines—taking our gold and mineral wealth back to developed economies by stealth and violence against Nigerians. Where one’s human right ends, the rights of another begin. Most especially for self-protection. If we fight, they say ‘human rights,’ but we will now be aggressive and we will question motives. We will stop what is happening in our land. We require your effective collaboration.”
He did not mince words in defining the new order based on effective synergy to support legitimate and transformative industrialization as well as infrastructural development.
“The poverty ravaging our continent and the question of security and counter-terrorism requires us to work in close and effective synergy. The world will ignore Nigeria at its own peril. If we engage in talk shops as real challenges wreck real havoc in real time, we will fail. The time to strike is now. The time to achieve real results is now. I fought for democracy. I was detained for democracy. I am now President and I am determined to prove that democracy can provide the development that our nation and our continent so urgently demands.
“Trace those of us here to our foundations and you will find that we have ties and links with poverty. We must not be ashamed of that history, but poverty is unacceptable. I am one of the lucky survivors of gripping poverty. Nigeria is truly a giant with 240 million people and counting with a massive youth population. We are done saying too much. We seek much action. We have arisen out of poverty as individuals, but until our people have arisen out of that, we will not rest, even if it requires decisions at home that make me temporarily unpopular,” President Tinubu stated.
Earlier, while marketing Nigeria to investors at the floor of the world’s second largest stock exchange, National Association of Securities Dealers Automatic Quotation System, Tinubu exposed them to the opportunities in the country.
“The forum afforded him the opportunity to interact with the Indian business community who promised investment worth nearly $14 billion in Nigeria”
“The greatest economy in Africa is Nigeria, there is an immense opportunity in Nigeria where you can invest your money without fear.”
Speaking at the Nigeria-U.S. Executive Business Roundtable held at the NASDAQ, Tinubu assured prospective investors of the safety of their funds and investment.
He added that he intentionally brought successful Nigerian industrialists and public officials to share experiences and operational plans respectively.
“Nigeria is an opportunity that is impossible to replicate or find elsewhere in any part of the world. We have brilliant young people who both innovate and consume at large scale. Our entrepreneurial spirit is a major part of what makes our market totally unique, aside from demography. There are enough values to spread around,” he stated.
The G-20 Summit
Also, President Tinubu in his bid to source foreign investors went to New Delhi in India to attend the G-20 Leaders’ Summit.
His mission was simply to attract foreign investment and promote Nigeria as a business-friendly destination, while meeting with leading industrialists and government officials from India and other G-20 countries to discuss ways to boost economic cooperation.
The forum afforded him the opportunity to interact with the Indian business community who promised investment worth nearly $14 billion in Nigeria.
The President’s spokesperson, Ajuri Ngelale listed the outcome of the Nigeria-India Presidential Roundtable and Conference in New Delhi, India, meeting to include: a new investment proposal from Indorama Petrochemical Limited to the turn of $8 billion in the expansion of its fertilizer production and petrochemical facility in Eleme, Rivers State.
Jindal Steel and Power Limited promised to invest $3 billion in Nigeria, while the founding President of SkipperSeil Limited, Mr. Jitender Sachdeva offered to invest $1.6 billion dollars in the establishment of twenty 100MW power generation plants across the states of Northern region to generate a total of 2,000MW of new power within the next four years.
The President was also reported to have approved the finalization of a new $1 billion agreement to bring the Defense Industries Corporation of Nigeria to 40 percent self-sufficiency in local manufacturing and production of defense equipment in-country by 2027 through a comprehensive new partnership with the managing arm of the Military-Industrial Complex of the Indian Government.
Another Indian firm, Bharti Enterprises, also promised to invest an additional $700 million in Nigeria, with work set to begin immediately.
Paris Summit
Meanwhile, the quest for foreign investors by President Tinubu dates back to June 20 when he travelled to France to attend the New Global Financing Pact Summit held in Paris.
The Summit hosted by French President Emmanuel Macron, was aimed at repositioning the global financial architecture to reconsider less developed countries, who are dealing with debilitating debt hangover, struggling through energy transition among others.
President Tinubu was reported to have met with heads of governments and development and trade institutions on the sideline of the meeting. Tinubu interacted with French President Macron at the Elysée, President of Swiss, Alain Berset, at PalaisBrongniart and President of Benin Republic, Patrice Talon.
Others include, Director General of World Trade Organization, Dr Ngozi Okonjo-Iweala, President of the African Development Bank, Dr Akinwunmi Adesina, President and Chairman of the Board of Directors of African Export-Import Bank (Afrexim), Prof. Benedict Oramah and President of European Bank for Reconstruction and Development (EBRD), Odile Renaud–Basso, as well as the Senior Vice President of Airbus/ATR, Public Affairs, Laurent Rahul Domergue, on aviation matters.
Tinubu did not hide his urgent quest for investors to come to Nigeria.
“We are ready for business, and prepared to welcome investment,” Tinubu assured the leaders of Afrexim and EBRD during a meeting on the sideline of the Summit.
He assured the team of the government’s determination to stimulate the economy with policies that support investment in areas of the country’s competitive advantage, particularly agriculture.
“We must stimulate recovery for the growth and prosperity of our people, which will not be far away. Nigeria is ready for global business and our reform is total. Nigeria is blessed with human and material resources, he said.’’
Responding, the President of AfreximBank, pledged to inject more money into the Nigerian economy as the bank was already building the first African Specialist Hospital in Abuja, and an Energy Bank. He listed areas of interventions to buoy the economy; like infrastructure, health, energy and agriculture.
Similarly, EBRD President assured Tinubu of commitment to invest in Nigeria stressing that it would be a mistake for the development bank not to invest in Nigeria, after considering six potential economies for investment.
She explained that the focus of the development bank would be on the private sector, especially Small and Medium Scale Enterprises.
President Tinubu also secured investment assurance from the Senior Vice President of Airbus/ATR, Public Affairs, Laurent Rahul Domergue, who said the company was prepared to invest in the aviation sector, particularly in supplying planes, maintenance and training.
The forum also offered President Tinubu an opportunity to have detailed discussions with President Talon who agreed on creating a new platform for joint patrols and surveillance by the Customs that will check importation of illegal goods into Nigeria, through the neighboring country. They further reviewed the trade relations that will benefit the West Coast, and Africa.
Talon pledged his support, saying “whatever is forbidden in Nigeria is forbidden in Benin.’’
LCCI’s lauds Tinubu’s trip to India
Interestingly, the President’s global search of investors using diplomatic avenues has received approval from appropriate stakeholders in the nation’s economy such as the Lagos Chambers of Commerce and Industry.
The Chamber in a statement signed by its President/Council Chairman, Michael Olawale-Cole commended Tinubu for attracting investment proposals worth $14 billion but warned on the need for a proper follow-up and provision of necessary conditions to actualise the promises.
“The outcome of the meetings President Bola Tinubu had with the leaders of the US, Germany, and South Korea, alongside the Indian investors, who have committed to providing a substantial sum of $14 billion in direct investments in critical sectors encompassing steel, petrochemicals, electricity, and agriculture, have instilled a sense of pride in the Organized Private Sectors and Nigerians at large.
“These proposed investments are certain to have positive impacts on job creation, economic development, and the diversification of the nation’s economy.
“However, LCCI would appreciate it if the President’s team would follow the example of India, Saudi Arabia, and China by establishing dedicated websites that provide useful information on investments.
“These websites should include details on the areas in which investments are required and the funds needed for each project. This strategy has the potential to provide global investment opportunities without necessitating excessive or unnecessary physical interactions/ movements.
“In addition, domestic players in each area will be provided with the chance to get accurate knowledge on the current industry status, including the projected number of agreements and investments in each sector. Such platforms will function as reliable information and metrics for evaluating performance and as a foundation for developing policies aimed at incentivizing industries that lack investment interest.
“The Chamber expresses its satisfaction with the bestowal of permanent member status upon the African Union by the G20, a development that will enhance the continent’s influence and participation in global governance.
“The President is on course in addressing issues confronting us as a nation, and the Organized Private Sector in Nigeria supports these actions. The Chamber also congratulates the President on his 100 days in office and urges him to remain focused on his efforts to make both private and public sectors in Nigeria work well for the people.”
Tinubu’s policies have opened Nigeria to foreign investors –BAT’S 4/4 Initiative
The Director General of BAT’S 4/4 Initiative, Dan Ohiomoba, said on Saturday that President Tinubu’s policies have opened up Nigeria’s economy and attracted foreign investors.
Ohiomoba said one of such investments is the resolution of PanVarti International and Ecobiologix to establish a regional office in Abuja as well as the formation of a Nigeria/Latin America Chamber of Commerce based in Panama to further bilateral business opportunities between the two regions.
He said BAT’s 4/4 Initiative had facilitated a visit of investors from PanVarti International and Ecobiologix to Nigeria.
Ohiomoba, in a statement, said President Tinubu’s recent policy overhaul had sparked a deluge of activities, enquiries from blue-chip international investors that include Consortium of Latin American Business leaders.
He said the Latin American business leaders discussed with officials of the Nigerian government, entrepreneurs and industry experts to explore potential investment opportunities in key industries such as energy, agriculture, manufacturing and technology.
He added the visit also explored both the fledgling and the burgeoning opportunities created by the commitment of the government to offer lower corporation taxes, enhance security measures and foster a more welcoming environment for foreign investments.
“The visit ended with a deep sense of optimism and commitment as the consortium praised President Tinubu’s forward-thinking policies and pledged to express their commitment to strengthening economic ties by the opening of a regional office for PanVarti International and Ecobiologix in Abuja as well as the formation of a Nigeria Latin America Chamber of Commerce based in Panama to further bilateral business opportunities between the two regions,” he said.
Ohiomoba added that the visit marked a significant turning point in the ongoing efforts to strengthen economic ties between Nigeria and some Latin American countries.
He said, “It is a confirmation of the truth we can all attest to, that President Ahmed Bola Tinubu’s avowed promise on his day of inauguration to ‘hit the ground running’ which he has followed through, is already yielding the desired dividends.
“This innovative hands-on approach to economic reforms has attracted international attention, particularly from Latin American nations seeking new avenues for growth and investment.”
He said one of the central pillars of President Tinubu’s initiative is the reduction of corporate taxes, making Nigeria a more attractive destination for foreign businesses.
“This strategic Tax initiative provides the desired sterling opportunity to effortlessly harvest and savour the proverbial low hanging fruits; a move designed to encourage immediate investment, stimulate economic growth, and create job opportunities for the nation’s vibrant youthful population.”
On security, he said a general overhaul of the security architecture and measures to rein in terrorists, who scared investors and made the environment unattractive for wealth creation, is another key component of the president’s agenda.
“The delegation of Latin American business leaders applauded the government’s commitment to improving the security situation, recognising that a stable environment is crucial for sustained economic development. By addressing security concerns head-on, Nigeria aims at instilling confidence in potential investors.”
He said the president’s intervention has opened Nigeria to foreign Investment, adding that the delegation’s visit also underscores Nigeria’s proactive approach to opening up its economy to foreign investment.
“President Tinubu’s administration has been very active in removing barriers and streamlining processes to make it easier for international businesses to establish a presence in the country. This initiative aligns with Nigeria’s broader goal of diversifying its economy and reducing dependency on oil revenue as the country’s main source of foreign exchange earnings.”
British-Nigerian network lauds Tinubu on exchange rates unification
Also, British Nigeria Business Network, an independent economic think tank has commended President Tinubu for implementing a unification policy of exchange rates aimed at boosting the country’s economy.
The organization commended President Tinubu’s administration for its forward-thinking approach to economic development, emphasizing that the measures taken thus far are essential for steering the nation towards sustained growth and stability.
According to the Executive Director of BNBN, Ifeanyi Ubani, he said one of the President’s primary initiatives was the unification of the exchange rate.
“Tinubu has indicated his seriousness to do good things for Nigeria. His steps show that he is willing to bring in foreign investors and indicates his desire to open up the economy”, he said.
“However, LCCI would appreciate it if the President’s team would follow the example of India, Saudi Arabia, and China by establishing dedicated websites that provide useful information on investments”
Ubani expressed optimism that the President’s action is a significant move to address economic disparities and enhance financial stability in the country.
He said the policy also aimed to streamline Nigeria’s multiple exchange rates, a long-standing problem which he said has negatively impacted businesses and investments in Nigeria.
“The President has opened the Naira flow in such a way that you no longer have parallel Naira flow. It’s no longer a situation where the CBN has different rates and the black market has different rates.
“He has rectified the Naira rates which makes it easier for people who want to invest in Nigeria to say “this is the amount and rate with which to do your proposal and feasibility, which can stand between one to five years”, he said, adding that the development was a sharp departure from the past where “You are, for instance, doing the Nigeria rate of say N450 to a Dollar and the parallel market is N750”.
Ubani, Country Representative of the British African Business Alliance who described the exchange rate unification as simply “wonderful”, also lauded the policy as a crucial step toward economic cohesion.
According to him, unifying exchange rates can foster investor confidence, attract foreign investments, and bolster economic growth. “Another thing is that he has opened what we call the capital and current repatriation flow.
“In the past, before you move in money, or capital in and out of Nigeria, it must go through CBN and there was so much delay, thereby hindering investment. That was why Nigeria had problems. President Tinubu’s administration has shown determination to tackle economic challenges head-on, with this latest policy as a testament to their commitment.
“By establishing a unified exchange rate system, the government aims at creating a level playing field for businesses, reducing market distortions, and attracting foreign direct investments”.
He described BNBN as a proactive organization, adding, “We check your steps, check the facts. We’ve been fact checking on all the meetings President Tinubu has been having with nations. It shows a burning desire to open up Nigeria’s foreign business market.
“Truly he has opened that part of the economy where you can bring in your money and take it. Those are two good moves”, he said.
He further said that President Tinubu has also gone out to invite all the “sensitive countries”, telling them that Nigeria is willing to welcome them, stressing that these steps make him a proactive President.
