Concerned by the dwindling inflow of foreign direct investment (FDI) in Nigeria, the Association of Investment Advisers and Portfolio Managers (IAPM) has renewed commitments to entice Nigeria to global investors as a chosen investment destination.
This was discussed at the 2021 Investment Advisers and Portfolio Managers’ Conference themed “The Future of FDI to Africa: building a competitive and world-leading finance centre and the role of investment advisers”.
Speaking at the forum, IAPM President and Chairman Council, Abimbola Olashore noted that the most salient features of current globalisation drive is in conscious promotion of cross-border investments especially by transnational corporations and firms, adding that studies have shown that FDI is positively linked with GDP growth with the ultimate effect of better economic performance
“For less developed countries to achieve their economic greatness, additional foreign capital to fund their economy is required, hence it is necessary to draw the attention of policy makers to the need for capital formation to fund the infrastructure deficits,” he said.
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Olashore added that international investors recognize the huge potentials available in the emerging Africa markets, especially Nigeria because of its demographic structure which provides a large market and necessary human capital.
He added that most developing countries have benefited from FDI inflow with effects on job creation, infrastructural developments, technology transfer and increased competition in domestic markets which has resulted in enhancing their products creation.
The IAPM president noted, however, that there has been a systematic decline in FDI to Nigeria since 2011, a year that witnessed the highest pick of $8.84 billion in FDI, adding that the first quarter of 2021 shows that FDI to Nigeria stood at $2.13 billion.
Explaining the problem of FDI inflow into Nigeria, he highlighted political issues, inflation rate, interest rate, credit rating, debt service, etc. as key factors
“Therefore there is no better time than now in Nigeria’s journey to economic prosperity and also for African countries to discuss and chart a sustainable programme geared toward attracting FDI,” he said.
