To boost Foreign Direct Investment (FDI) inflows and facilitate the nation’s industrial growth, there is a need for incoming government to step up policy implementation in the areas of infrastructure development and promote strict regulatory measures that would help protect businesses operating in Nigeria.

Andersen, while unveiling its report on Nigeria’s ‘2023 Economic Outlook’ in Lagos at the weekend, stated it was imperative for the incoming administration to pursue vigorously, policies that would help tackle perennial issues constituting disincentive to investment and attract FDI into the country.

The analysts argued that foreign portfolio investors currently dominate the nation’s investment space with their hot money and strategy of flight for safety after slight perception of instability.

They argued that the country had, witnessed a number of investments in infrastructure projects across different spectrum in the past few years, especially in the transport sector, but noted that a lot needs to be done to unlock rapid development in the space and ultimately reduce overall cost of operations for companies.

Specifically, Partner and Head Business Advisory Practice, KPMG, Lateef Surakatu, while fielding questions from journalists, stated that private sector partnership is very key in attracting FDI but added that fiscal and monetary authorities must create an enabling environment to achieve a meaningful result.

According to him, some private enterprises have what it takes to pull huge capital from abroad but these investors want to see a stable business environment with high-growth opportunities in Nigeria.

He lamented that government could not effectively maximise the benefits of the Infraco established to accelerate investment and finance infrastructure projects in Nigeria because the enabling laws and regulations that would engender confidence in private investors and propel them to provide the fund needed for the project was not available.

Surakatu said: “We do need to go out of the country to borrow to finance our infrastructure. Locally, we have about N15 trillion waiting to be tapped, however the government has not been able to effectively utilise the fund even with the establishment of an infraco.

“Reason is that enabling laws and regulations that would give confidence to private investors that have this fund are not there.”He added that if the new administration can tow the path of the United Kingdom (UK) in terms of infrastructure growth by ensuring that enabling environment is created, safety of investment guaranteed with assurance on easy repatriation of investors’ capital without certain restrictions, the money would be made available.

Also speaking, Partner and Head Transfer Prices & Economic Advisory Services of the firm, Dr Joshua Bamfo, said Nigeria’s rising inflation and other macro economic challenges bedeviling the economy have to be addressed, because until this happens, the government can not really implement policies that would stimulate investment.

According to him, with the National Integrated Infrastructure Master Plan (NIIMP), $2.3 trillion is the investment required to close the infrastructure gap in Nigeria from 2020 to 2043.

He noted that the government is unlikely to meet the investment required for the public sector in the nearest future, which necessitates the implementation of policies to improve investment and government revenues.

“Over the years (2021-2023), Nigeria has been unable to meet its annual investment requirement for each core infrastructure based on the approved budget.

“Foreign investments are not expected to improve in 2023, as it is a volatile year due to the elections, hence, most foreign investors may seek safety in less volatile emerging markets.

Therefore, he stressed the need for the government to work on the nation’s investment climate through creating an enabling environment and the use of incentives.

“Government needs to create an enabling environment for investment.
Foreign investment has declined by up to 80 per cent, we really need to create an enabling environment for businesses to invest in Nigeria because the country has a large market and we need to maximise that opportunity.”