Nigeria must adopt asset-driven economy to attract FDI, stabilise growth – Expert

Ayo Teriba, CEO of Economic Associates, has called for Nigeria to urgently transition from an output-based economic model to an asset-driven one, warning that failure to do so will exacerbate the country’s economic challenges.

Speaking at the 2025 economic outlook event organised by the Association of Corporate Treasurers in Nigeria (ACTN) in Lagos, Teriba highlighted Nigeria’s vast but underutilised assets, which could attract significant foreign direct investment (FDI) if properly monetised.

“The world has moved beyond relying on production and exports for economic growth. The countries that are thriving today are those that have successfully leveraged their assets to attract investment. Nigeria must do the same if it hopes to stabilise its economy and improve liquidity,” he said.

He classified Nigeria alongside South Africa, Brazil, and Russia as countries struggling with liquidity crises due to their failure to adapt to modern economic trends.

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Teriba criticised the Nigerian government’s reliance on debt-financed growth instead of maximising state-owned enterprises and infrastructure. “Saudi Arabia turned its oil reserves into Aramco, one of the world’s most valuable companies. The UAE transformed Dubai into a global investment hub. Meanwhile, Nigeria continues to borrow when it should be attracting equity investments through its assets,” he said.

He advocated for opening strategic sectors such as energy, railways, and telecommunications to private investment to reduce government spending burdens. Teriba pointed to the success of Nigeria’s telecom sector, which attracted private capital without government borrowing, as a model for other industries.

Teriba also raised concerns about Nigeria’s reliance on Chinese loans for infrastructure projects, describing them as unfavourable. “Chinese loans are structured as export transactions that primarily benefit China. Nigeria does not receive cash but instead pays for infrastructure projects using borrowed funds while the contractors, materials, and labour all come from the same China. This is not a sustainable approach,” he said.

He proposed that Nigeria shift to asset-based financing by securitising national assets and creating a transparent investment registry for global investors. “Instead of issuing Eurobonds or relying on loans, we should be issuing asset-backed bonds and equity-linked instruments. Investors are willing to come in if we create the right structure,” he said.

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Teriba urged Nigerian states to leverage their assets rather than depend on federal allocations. “Many Nigerian states have resources that are more valuable than entire economies elsewhere, yet they remain untapped. Governors need to start thinking like asset managers, not budget administrators,” he said.

On exchange rate stability, Teriba argued that strengthening Nigeria’s foreign reserves through asset-backed investments would be more effective than temporary government interventions. “If we increase our reserves through smart asset management, the naira will appreciate naturally, reducing inflation and improving economic welfare,” he noted.

He urged policymakers to act swiftly, stating that Nigeria’s economic challenges stem from policy choices rather than external factors. “Nigeria’s outlook is potentially bright, but only if we make the right decisions. We cannot continue relying on outdated economic models. The time to transition to an asset-driven economy is now,” he said.

Adeyinka Ogunnibi, President of ACTN, the importance of innovative financial strategies in addressing Nigeria’s economic challenges. He noted that corporate treasurers play a pivotal role in shaping sustainable economic policies and called for increased collaboration between the private sector and policymakers.

“As treasurers, we must embrace new approaches that not only enhance liquidity management but also drive long-term economic stability. The theme of this year’s outlook reflects our commitment to advancing financial solutions that can reposition Nigeria for growth,” he said.