The country’s economy is expected to be boosted by a $7 billion Foreign Direct Investment (FDI) in the oil sector, according to Wale Edun, the minister of finance and coordinating minister of the economy.
In her guest appearance on Channels Television yesterday, Edun stated that the government was making port infrastructure investments to facilitate trade for investors and increase national production.
He stated, “In terms of numbers, it is estimated that the oil sector will contribute $7 billion to another significant boost to the economic environment: the national single window project, which is essentially an e-community and trade facilitation platform that will completely transform port operations.”
He added that overseas private investors who are interested in making investments in various sectors of the economy have been invited by the administration.
“Having anti-double taxation treaties in place, such as Investment Promotion and Protection Treaties, is one of the things we need to undertake on our own when working with private businesses. In light of that, we’re clearing up our end of those agreements with regard to private investment,” he stated.
The minister’s remarks come in the wake of the recent turmoil in foreign direct investment (FDI) into Nigeria, where many corporations—particularly multinationals—are withdrawing from or decreasing their presence in the nation. Kimberly-Clark, the company that makes Huggies, is the most recent example of this.
Nigeria’s illiquid economy is in desperate need of foreign investment, but potential investors find the business climate intimidating, particularly given the improper order of the macroeconomic reforms.
In defense of himself, Edun pointed out that by raising interest rates and opening up the FX market to Willing Buyer and Willing Seller transactions, Nigeria has made economic conditions more favorable for investors.
Businesses will come and go, but our goal is to retain them. There are more arriving. The coordinating minister of the economy stated that the president personally pitches investors on Nigeria’s potential.
In addition, Edun said that rising food costs and the depreciation of the naira encourage domestic manufacturing and present chances for regional investors to boost output.
“All government vehicles in Nigeria are required to run on compressed natural gas (CNG), electricity, or solar power.”
“Any combination of the aforementioned is a significant inducement for investors to enter the market and reap the rewards of government patronage,” he said.
The News Chronicles previously reported that the once-lucrative Nigerian oil and gas industry attracted no capital inflow in the most recent review quarter, leading to a first for the industry: zero foreign direct investment (FDI) in the second quarter of 2023.
With inflows of more than $22.1 billion, Nigeria drew the greatest amount of foreign direct investment (FDI) of any African nation in 2014.
Oil FDI was $750, 000 in the first quarter of 2023.
The nation’s National Bureau of Statistics has yet to release its first-quarter FDI report for 2024 and full-year FDI reports for 2023, but even a seer can see that the oil corporation is in dire straits.
