Stakeholders chart path for promotion of FDIs

The need for Foreign Direct Investments (FDIs) is no doubt crucial to the growth of any developing country hence essential to Nigeria, which is trying to reflate its economy, stakeholders opined at the economic summit organized by the Franco-Nigerian Chamber of Commerce and Industry (FNCCI).

According to the stakeholders, FDIs play an important role in modernizing an economy and promoting development, driving productivity through adoption of enhanced technology and technical know-how.

Chief Executive Officer, Financial Derivatives Company, Bismark Rewane, said one of the major challenges currently affecting investors into the country is the instability of exchange rates, adding that monetary policies must complement fiscal policies for FDIs to grow in Nigeria.

Rewane who delivered a presentation on ‘Promoting FDI through Private-Public Partnership (PPP)’, said PPP is a popular tool for funding new infrastructure projects around the world.

He noted that the involvement of the private sector to develop public infrastructure eases the financial burden on government.According to him, the PPP scheme can also play a further role in promoting economic diversification and FDI in the country.

He described FDI as a cocktail that catalyzes the growth of a nation, saying “FDIs cannot displace domestic investment as it plays a vital role in the decisions of international investors.

President, Lagos Chamber of Commerce and Industry, (LCCI), Dr. Nike Akande, revealed that FDI benefits a developing economy like Nigeria, not only by complementing domestic investment, but also in terms of job creation, transfer of technology, increased domestic competition and other positive externalities.

Akande affirmed that the Nigerian economy is being repositioned to attract required FDIs in the coming years to meet the infrastructural requirements for growth and development.

“We however must pay attention to macroeconomic stability, diversify the economy away from dependence on oil and gas, resolve the lingering forex challenges, reform our maritime sector for trade facilitation and build strong institutions founded on the principles of good governance standards. Nigeria must also sustain its reform efforts at improving the ease of doing business and competitiveness”, she said.

She stated that the country remains one of the developing nations with high returns on investments, adding “with government’s focus on growth sectors like agriculture, solid minerals, power, automobiles, Infrastructure and technology, Nigeria would remain a major investment destination on the African continent”.

Commissioner for Commerce, Industry and Co-operatives, Lagos State, Rotimi Ogunleye, noted that attracting foreign companies and capital to Nigeria would increase the inflow of opportunities, superior technologies, expertise and innovation, which would add value to the Gross Domestic Product (GDP) and improve employment opportunities.

“In spite of our economic challenges as a nation, Nigeria continues to attract not only French investors but other astute international business prospects. Nigeria offers a large market for investors, seeking for more to invest”, he said.

Earlier in his remarks, Consul General of France, Laurent Polonceaux, said Nigeria in the coming years is bound to be a much respected feature by other countries in the world, which could be attributed to the potential manpower and natural resources available to the country.

“The benefits of FDIs can only be realized if issues relating to ease of doing business are looked into. We do believe in the Nigeria market”, he said.