January 30, 2024
His Excellency, President Bola Ahmed Tinubu
Office of the President
Federal Republic of Nigeria
Aso Villa, Abuja
Nigeria
Dear President Tinubu,
With a sense of urgency and critical concern for our nation’s economic condition and your administration’s current efforts to secure Foreign Direct Investment (FDI), we must draw attention to the outcomes observed within your first eight months in office.
While your efforts to promote Nigeria on the global stage are recognized, including your trip to France this month, there is a pressing need to recalibrate your strategy towards creating a truly investment-worthy environment domestically. Persistently pursuing the same FDI strategies without addressing the underlying issues is counterproductive.
Since taking office, there has been a remarkable decline in Foreign Direct Investment (FDI). Despite the extensive international engagements you and Vice President Kashim Shettima have undertaken across 17 nations with the objective of attracting international investors and securing FDI, recent statistics alarmingly indicate a 44% nosedive in FDI inflows for Q3 of 2023, in comparison to the same quarter in the preceding year.
The ongoing and significant downturn in FDI shows no signs of abating, raising critical questions about your administration’s strategy and appeal to foreign investors.
We strongly recommend a prompt and strategic shift in the economic policies and approaches being pursued under your leadership. This change is essential to address current challenges and to foster a more conducive environment for growth and investment.
The nation’s persistent challenges with infrastructure, regulatory overreach, pervasive corruption, foreign currency scarcity, and bureaucratic inefficiencies are glaring barriers deterring potential investors.
The state of the power sector, transportation networks, and the digital infrastructure is far from conducive for business. Investors seek certainty and reliability, something the country currently struggles to offer.
Moreover, the regulatory landscape is currently seen as unstable and difficult to predict. To attract sustainable foreign direct investment (FDI), it is essential to simplify these processes, establish a consistent regulatory framework, stabilize the national currency, and harmonize the various exchange rate policies.
Additionally, the specter of corruption and lack of transparency continues to tarnish the nation’s image internationally. It’s not just about making promises to tackle these issues; it’s about tangible actions that resonate with both local and international business communities.
The perception of your administration’s anti-corruption efforts is alarmingly viewed as non-existent and ineffectual, casting a shadow on the integrity of your government and diminishing trust in the nation’s governance system.
Economic policies need to inspire confidence, not create more uncertainty. Inflation control, fiscal discipline, foreign exchange liquidity, and growth initiatives are non-negotiable elements for fostering an environment where investments can thrive. Yet, your administration’s unforced policy errors on these very issues or apparent inaction, are flashing red signals to potential investors.
The truth is, no amount of international engagements or diplomatic missions will suffice if these foundational issues remain unaddressed. It’s akin to selling a product without ensuring its quality — eventually, the facade wears off.
Your administration has a pivotal role in shifting this narrative. The focus must urgently turn inwards, fortifying the nation’s economic foundations before embarking on more FDI solicitation trips. The potential for Nigeria to be a leading destination for investment in Africa is immense, but you are yet to fully capitalize on this due to overlooked domestic reforms by your administration.
No serious investor is inclined to place their funds into Nigeria when it is perceived as hovering on the edge of instability. Investment decisions are deeply influenced by the anticipation of a stable political climate, economic reliability, and adherence to legal frameworks. For Nigeria, being viewed as nearly in a state of collapse introduces a level of risk that can eclipse the allure of any potential gains, with the looming fear of instability and disorder.
To reverse this perception and attract sustainable investment, Nigeria must demonstrate more than just short-term stability; it needs to show a commitment to building enduring institutions, guaranteeing political stability and security, nurturing a transparent, accountable governance culture, and laying the groundwork for innovation and economic growth.
Addressing these foundational issues is crucial for Nigeria to assure global investors of its potential as a secure and profitable investment destination for the long haul.
We urge you to prioritize these critical areas of reform with the urgency and seriousness they demand. The path to transforming Nigeria into a formidable economic powerhouse is through solid internal transformation, not just external engagements.
We hope this letter is received in the spirit of constructive feedback it is intended. The future of the Nigerian economy is at stake, and the actions you take now will determine the welfare of Nigerians and the nation’s global economic standing for years to come.
Sincerely,
The Editorial Board
The African Mind Journal
