By Gidado Ibrahim
Economic Experts have severally extrapolated that strong economy can engender respect among the comity of nations in several ways. Specifically, they argue that a strong economy can elevate a country’s global influence, granting it a greater voice in international affairs and decision-making processes. Economic strength often translates into political clout, enabling a nation to shape global agendas and advocate for its interests more effectively. They’ve also posited that Economic strength provide a nation with diplomatic leverage, enabling it to engage in international relations more effectively. Economic assistance, trade agreements and investment opportunities can be used to build relationships, resolve conflicts and promote cooperation.
Additionally, a strong economy can engender respect among the comity of nations by enhancing global influence, fostering economic interdependence, promoting technological advancement, projecting cultural soft power and providing diplomatic leverage. These factors contribute to a nation’s standing in the international community and its ability to shape the global agenda.
For Nigeria, a 1962 international study predicted that in 15 years, Nigeria, India and Brazil would join the ranks of the developed world. While India and Brazil have made significant strides towards this goal, Nigeria has not.
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One of the key reasons for Nigeria’s lack of economic progress is the failure to get its economic dynamics right. The country’s economy has been heavily reliant on oil exports, which has made it vulnerable to fluctuations in global oil prices. Additionally, Nigeria has a large informal economy, which has made it difficult to collect taxes and implement effective economic policies
Weary of this sad state of the Nigerian economy and determined to turn the tide, President Bola Ahmed Tinubu has embarked on a series of investment drives, both domestically and internationally, since assuming office on May 29, in a concerted effort to revitalize the country’s economy and attract foreign direct investment. These initiatives, which align with his administration’s Renewed Hope Agenda, aim to diversify the economy, create jobs and foster sustainable growth.
President Tinubu began to demonstrate his commitment to attracting FDI to Nigeria by creating a conducive business-friendly environment. A significant milestone in Tinubu’s investment drive was his participation in the Saudi-Africa Summit in Riyadh, Saudi Arabia, in November 2023. During the summit, he addressed a gathering of leaders from both continents, emphasizing Nigeria’s readiness to embrace business opportunities and assuring potential investors of the safety and returns on their investments.
Tinubu’s message resonated with the Saudi investment community, prompting a positive response from Saudi Trade and Investment Minister, Kahlid El-Falih. El-Falih announced plans for a large delegation of Saudi CEOs to visit Nigeria in the near future, indicating a strong interest in exploring investment opportunities.
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Tinubu’s efforts has since started delivering quick wins. For instance, in September, Nigeria secured nearly $14 billion of investment pledges from Indian investors. Specifically, India’s Jindal Steel and Power (JNSP.NS) committed to pumping $3 billion into Nigeria’s steel sector and Indorama Corp plans to invest an additional $8 billion to expand its petrochemical facility in Nigeria. Also, Skipperseil Ltd’s founding Chairman, Jitender Sachdeva, and India’s Bharti Enterprises each pledged $1.6 billion over four years to build power generation plants and $700 million in Nigeria, respectively.
Equally, Nigeria approved a $1 billion partnership agreement with the Indian government to help the Defence Industries Corporation of Nigeria attain 40% self-sufficiency in local manufacturing and production of defence equipment in three years.
In addition to international outreach, Tinubu has also been actively promoting investment within Nigeria. He has held meetings with business leaders, industry representatives and state governors to discuss potential investment projects and address any concerns or obstacles.
One notable initiative is the establishment of the Nigeria-Saudi Business Council, which aims to facilitate collaboration and investment between Nigerian and Saudi businesses. The council is expected to play a crucial role in identifying and promoting investment opportunities in various sectors of the economy.
Tinubu has identified several key sectors that hold significant potential for investment, including energy, agriculture, infrastructure, manufacturing and tourism. These sectors are considered essential for driving economic growth and creating employment opportunities.
In the energy sector, Nigeria’s vast oil and gas reserves, as well as its potential for renewable energy development, present attractive investment opportunities. Agriculture, another key sector, offers opportunities for investment in production, processing, and logistics, aiming to boost domestic food production and reduce reliance on imports.
Infrastructure development is also a priority, as Nigeria’s aging infrastructure has hampered economic growth. Investments in roads, railways, ports and power generation are crucial for improving connectivity, facilitating trade and supporting economic activities.
Manufacturing and tourism are also seen as promising sectors for investment. Nigeria’s large and growing population provides a strong consumer base for manufactured goods, while its diverse natural beauty and cultural heritage offer potential for tourism development.
For industrialization to get to its peak in Nigeria, it is high time Nigerian foreign partners on industries and manufacturing started showing concern about reviving Bachita Sugar Company, the largest sugar company in Africa; Nigerian Paper Mills, Jabba, the largest paper mill in Africa; Jos Steel Rolling; Kastina Steel Rolling, Kano Steel Rolling; Ekot Aluminum Industry; Nigerian Textile industries and our agricultural processing industries.
With the provision of these opportunities by the Renewed Hope Agenda, African Development Bank (AfDB) and NEXIM Bank should step up their intervention initiatives in ensuring President Tinubu and his deputy, Vice President Kashim Shettima, deliver on their campaign promises.
Despite the promising investment opportunities, Nigeria faces challenges that need to be addressed to fully attract foreign direct investment. These include corruption, bureaucratic hurdles, security concerns and a reliance on oil exports, which makes the economy vulnerable to fluctuations in global oil prices.
The Tinubu administration has been working to address these challenges through various initiatives, including anti-corruption measures, reforms to streamline business processes and efforts to improve security. The government is also emphasising the diversification of the economy to reduce reliance on oil exports.
As I conclude, let me submit that President Tinubu’s investment drive represents a significant effort to revitalise Nigeria’s economy and attract foreign direct investment. By addressing existing challenges and promoting opportunities in key sectors, the administration aims to create a more conducive environment for businesses and foster sustainable economic growth.
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The success of these initiatives will depend on continued commitment to reforms, collaboration with stakeholders, and effective communication of Nigeria’s investment potential to the global community.
Finally, let me also implore our brothers and sisters in the organised labour to take heart in the face of the hardship that they, as well as all Nigerians, are currently undergoing. The setbacks are temporal challenges begotten from stringent measure taken by the Tinubu administration to change the dwindling economic fortunes of the country.
Instead of expending their energy in industrial actions and protests that would not change anything, the labour unions should use their constitutional mandate to demand for essential rights, such as staging rallies to push for effective legislation that would ensure effective prosecution of corrupt persons involved in fuel subsidy scam, arms deal and other looters of public funds.
– Ibrahim is Director, Communication and Strategic Planning, of the Presidential Support Committee (PSC).