US firms to stake $2.37bn in Nigeria
The American Business Council (ABC) has tasked the government across all levels to address challenges limiting the inflow on investments into the country even as it hinted that the US forms operating in Nigeria would stake an additional $2.37 billion in the economy in the next three years.
Having spent $2.57 billion to expand their operations between 2014 and 2019, the ABC noted that while the value of proposed investments is fair and minimum estimates.
It said there is the need for an improved investment climate and ease of doing business (EODB) to encourage new inflows as current foreign direct investment (FDI) inflow into the country remains low.
It identified foreign currency access and policy, general policy consistency/ implementation/uncertainty, specific industry regulations and insecurity as key issues impacting business operations in the country.
Presenting the outcome of its 2020 economic impact survey, the President of ABC, Dipo Faulkner, stated that the impact of American firms’ investment in the economy cannot be ignored, especially as it relates to job creation and value addition.
According to him, over 30,000 indirect and 13, 100 direct jobs were created by American companies in the period under review. About N1.08 trillion revenue was also generated in 2019, down from N1.47 trillion in 2018, he said.
The Chief Executive Officer of ABC, Margaret Olele, noted that there were over 100 US companies in Nigeria but the survey only represents less than 50 per cent of them. She added the Council was working with several stakeholders to improve its impact on the economy.
“US companies are here for the long-run. Investors are still coming despite the various challenges in the economy but they only want to invest in a space that is not clogged by regulations. US firms are interested in doing long-term businesses and support the growth of the economy but they need an ally in the government.
“The US government has continued to support Nigeria and other countries despite US policy. A lot is being done by the US government and aggregation of such activities will help to see such impact,” she added.