Selling Nigeria to Global Investors

EDGY OPTIMIST by Obinna Chima

“Nigeria is no longer just a promise. The facts and statistics are constantly improving. Nigeria is open for business and this is the best time to invest in Nigeria. The reforms have come home to rest and this is the best time to invest in Nigeria. I invite you all. Nigeria is open for business.”

The foregoing are excerpts from the remarks delivered by Idris Belo-Osagie, Special Adviser on Economic Strategy to the Minister of Finance and Coordinating Minister of the Economy, after presentations by the Minister’s Special Adviser, Macroeconomic Policy, Prof. Bright Eregha and the Deputy Governor, Economic Policy Directorate, Central Bank of Nigeria (CBN), Mr. Philip Ikeazor, on the state of Nigerian economy, while speaking at an investors’ forum organised by the Nigerian delegation on the sidelines of the ongoing International Monetary Fund and World Bank Group Annual Meetings in Bangkok, Thailand.

Beyond the assurances of reform and renewed optimism, the forum sought to bridge the gap between investment interest and actual capital commitments as well as to enhance the country’s visibility.

To achieve this, the government introduced a deal room designed to connect prospective investors directly with key policymakers, showcase investment opportunities and address concerns about investing in Nigeria. The initiative was intended to give investors direct access to relevant government officials and help convert interest in the country’s investment pipeline into actual commitments.

According to the government officials, the pipeline comprised 65 projects requiring a total of $78.5 billion, with energy and transport accounting for almost four-fifths of the funding requirement.

The project breakdown presented at the forum showed that oil, gas and power account for 25 projects requiring $36.4 billion, while transport and maritime account for eight projects valued at $25 billion.

Agriculture and agro-processing account for six projects requiring $9.8 billion, while industry, manufacturing and mining comprise 17 projects requiring $6.6 billion.

Technology, health and urban services account for the remaining nine projects, with a combined capital requirement of $700 million.

The government presented investment opportunities across different funding categories, from projects requiring less than $100 million to those needing $1 billion or more.

The pipeline ranged from $1 million to $15 billion per project, with a median capital requirement of $153 million. Of the 65 projects, 48 require less than $500 million, while 17, valued at a combined $72.3 billion, require at least $1 billion each.

The government also highlighted the protections available to foreign investors.

These they listed to include permission for 100 per cent foreign ownership in most sectors, full repatriation of capital and profits with a Certificate of Capital Importation, double taxation and bilateral investment treaties, and Nigeria’s membership of the International Centre for Settlement of Investment Disputes (ICSID).

The investment framework also included a five per cent annual tax credit on qualifying capital expenditure for five years under the Economic Development Tax Incentive.

Sharing the success story of the Dangote Industries Limited, Dr. Hassan Mahmud, said the government(‘S) reforms – both fiscal and monetary – (has)HAVE helped TO stabilise operations of the Dangote Group.

He said policy consistency and incentives available to businesses operating in an export-free zone were important factors in building investor confidence.

“The transparency and the credibility we have seen in that have significantly enabled the Dangote Group to have good projections and was able to come out of the woods from his investment of about $20 billion in the refinery,” he said.

Mammud urged international investors to consider Nigeria, describing the country’s reform experience as a model for other African economies.

“Please come into Nigeria, bring your investment. Nigeria is actually a symbol to other African countries now,” he said.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, also called on global investors to consider longer-term commitments, particularly as interest rates begin to decline and the relative attractiveness of fixed-income investments changes.

Oyedele said the government was strengthening collaboration between fiscal and monetary authorities, adding that stability and gradual appreciation of the naira were helping to moderate inflationary pressures.

Oyedele said the government would focus on five major areas of reform: agriculture, power, inflation management, regulatory efficiency and data transparency.

On power, he said, “You cannot power a $1 trillion economy in darkness. It’s impossible.”

He explained that the government was examining market-reflective pricing, transmission challenges and efficiency in the electricity sector, which remain important considerations for investors seeking to establish or expand businesses in Nigeria.

On regulatory reform, Oyedele said excessive regulation, unclear rules and administrative burdens imposed significant costs on businesses.

On data transparency, Oyedele acknowledged concerns about the availability and consistency of Nigeria’s fiscal statistics, particularly the tax-to-GDP ratio. He said the Ministry of Finance was finalising arrangements to make relevant information available and accessible on its website.

CBN Governor, Mr. Olayemi Cardoso, emphasised that lower inflation remains critical to improving the welfare of ordinary Nigerians.

“Our medium-term target is to bring it down to single digits. Of course, as we embrace inflation targeting, that will obviously be a lot more open and transparent, and people will be able to have a clearer sense of the road of travel,” he said.

He also pointed to Nigeria’s external reserves, which he said had reached their highest level in 18 years, describing them as a buffer against external shocks.

According to Cardoso, the reforms helped Nigeria withstand global pressures, including the effects of war and discussions around tariffs, while the exchange rate had remained stable and appreciated.

Nevertheless, beyond the beautiful slides and colourful PowerPoint presentations, Nigeria’s government and policymakers must move from selling investment opportunities to strengthening investor confidence. International investors are accustomed to ambitious presentations, attractive incentives and promises of reform. So, the government Nigeria must take steps to reduce abrupt policy reversals, strengthen regulatory independence and ensure that investors can make long-term decisions without constantly recalculating political and regulatory risks.

Foreign direct investors require a credible framework for managing currency risks, settling cross-border obligations and planning future returns. Nigeria must sustain efforts to contain inflation, deepen the FX market, improve fiscal discipline and strengthen external buffers without creating distortions.

Additionally, the government must confront its infrastructure deficit, particularly unreliable electricity, expensive logistics and inadequate transport networks. No investment pitch can permanently compensate for the additional cost businesses incur from generating their own power, moving goods through congested corridors or relying on inefficient ports. These structural weaknesses erode productivity, undermine competitiveness and discourage investments that require long payback periods.

Addressing multiple levies, inconsistent enforcement and shortening the lengthy approval processes are concerns that the government must address beyond the investor forum. Finally, equally important is to ensure faster dispute resolution, stronger commercial courts and reliable enforcement of contracts and property rights.