U.S. firms in Nigeria generate N1.4 tr, contribute $1.9b FDI
The United States (U.S.) companies operating in Nigeria are said to have generated about N1.4 trillion in 2018.
The companies during the same period also contributed about $1.19 billion through foreign direct investment (FDI) inflow and created over 18,000 direct jobs and over three million indirect jobs.
At the launch of the 2019 Nigeria Economic Impact Survey, which analyses the economic effect of U.S. companies, President, American Business Council (ABC), Dipo Faulkner, said the report highlights the companies’ impact on the Nigerian economy in 2018, through gross value added to the output, investment, jobs, and communities.
He said the survey, which was administered by the ABC in collaboration with the United States Embassy, Verraki, KPMG, and PwC, noted that the data and analysis are based on the responses of over 58 U.S. companies operating in Nigeria.
According to him, given the challenging time Nigeria is facing, there is hope of an improved economic growth in due time.
The Chief Executive Officer/Executive Secretary of ABC, Margaret Olele, maintained that the survey showed an increased interest from U.S. companies seeing Nigeria as a critical West Africa hub, especially with the recent signing of the African Continental Free Trade Agreement (ACFTA).
She said the top four identified issues impacting businesses in Nigeria, are specific industry regulation, general policy regulation, taxation, crime and security.
With over N1.9 billion spent on corporate social responsibility and N1.6 billion spent on training during the period, she said it was a clear indication that U.S. businesses in Nigeria are committed to contributing to the economy by uplifting its people, increasing investment, and facilitating trade.
“In the first quarter of 2015, Nigeria got an inflow of $348.3 billion, while in the first quarter of 2019, Nigeria got an inflow of $1 trillion from the U.S. This shows a 339 per cent growth between the two election cycles and confidence in the economy.
“Today is a challenging time in Nigeria, particularly for foreign inventors. Through this survey, we saw a renewed focus of U.S. companies operating in Nigeria to become more productive and engaging more locally to maximise efficiency and investments.”
A member of the Board and Partner, PwC, Andrei Ugarov, said the Council has organised strategic dialogues with the government on major policy decisions, including the Economic Growth and Recovery Plan (ERGP), improving the ease of doing business initiative and currency interventions by the Central Bank of Nigeria.
He said the Council has also mobilised multi-stakeholders group to engage regulatory agencies and resolve critical challenges for member companies.