A development expert, Pastor Baba Yerima Ballah, has lamented the difficulties of attracting foreign investment into Nigeria, saying bureaucratic and institutional challenges have continued to frustrate efforts to finance major development projects in the country.

Ballah, the Group Chief Operating Officer of Wisdom Kwati Group said the experience had forced the company to rethink its strategy for developing its proposed smart city project in Nigeria.

He spoke at the unveiling of a new office of Wisdom Kwati Group and the announcement of its transition to a public limited liability company.

Recounting the company’s experience, Ballah said it had approached the German government about 10 years ago with a proposal to develop smart cities in Nigeria and subsequently received a grant for the initiative.

According to him, the project was conceived at a time when the concept of smart cities was not widely discussed in Nigeria.

He, however, said the company encountered challenges despite the initial progress made in securing international support.

“We had funding from different parts of the world into Nigeria. Unfortunately, some of the funds landed in Nigeria, but the people didn’t know. Nigeria wasn’t ready,” he said.

Ballah added that the company was subsequently informed that the funds entering the country’s financial system could disrupt it, forcing the promoters to abandon the initial arrangement and reconsider their approach.

He described the experience as evidence of the difficulties private-sector investors face when attempting to mobilise foreign capital for large-scale development projects.

“It was difficult to bring foreign funding into Nigeria. Very difficult. For those of you here who are private, you will know that it’s not easy. The government gets involved,” he said.

Ballah said the experience had not ended the company’s ambition to develop its smart city project but had necessitated a change in strategy and a renewed focus on building its corporate identity.

He recalled that the business began under the name Karabow before evolving into the present group, which he said now operates through different business entities, including Wisdom Kwati Smart City Plc and Parable Construction.

 

Earlier, the Port Harcourt Branch Manager, Omeiza Amos, described the office unveiling and the company’s transition to a public limited company as significant milestones in its growth.

Amos said the developments represented a new phase of expansion, stronger partnerships and greater opportunities for the business.

The Wisdom Kwati Group has outlined plans for a 5,000-hectare smart city project in Karshi, Abuja, designed to integrate housing, healthcare, agriculture, technology and commercial activities.

The project, according to a Managing Director of Wisdom Kwati Smart City, Richard Igoche, is intended to support urban development and create opportunities for economic activities.

Igoche said the proposed development was conceived as an integrated urban community, with its planning focused on combining essential services, enterprise and technology.

He said the project reflected the need for new approaches to urban development as Nigeria continues to grapple with housing demand, infrastructure deficits and the need to expand economic opportunities.

The development is expected to incorporate different sectors, including healthcare, agriculture and business, although details of its implementation timeline, funding structure and infrastructure delivery were not provided in the statement.

The group’s chairman, Wisdom Kwati, has also pursued real estate and infrastructure investments through the company’s other developments, including Nimi Hills in Guzape, Abuja.

In October 2024, Kwati announced a proposed $5 billion investment plan for Sierra Leone, targeting the real estate and aviation sectors, according to the chairman’s profile supplied by the company.

The proposed Karshi project adds to the group’s stated investment ambitions in urban development.

However, its potential contribution to housing supply, employment and local economic growth will depend on implementation, infrastructure provision and the extent to which the development meets the needs of residents and businesses.