Why Nigeria Should Rethink Its Dependence on Foreign Investment
The prevailing notion among Nigeria’s leaders that foreign investment is the key to national development is misguided. Since the return to democracy in 1999, every elected president has embarked on international trips, proclaiming a commitment to attract foreign investors. However, it’s crucial to recognize that every foreign investor was once a local entrepreneur, and successful industries typically emerge from stable, well-supported environments.
For industries to flourish, essential infrastructure must be in place—this includes reliable electricity, efficient public transportation, effective telecommunications, good road networks, and access to clean water and education. Recently, security has also become a vital component; without safety for lives and property, no investment can take root.
The onus of providing these infrastructures lies with the government. Investors, both local and foreign, cannot bear the financial burden of creating the necessary foundation for their operations. Without adequate infrastructure, no amount of global outreach will lead to successful investment.
Countries with thriving industries have governments that heavily invest in infrastructure to create a conducive environment for business. These nations offer subsidized utilities, healthcare, and education to ensure that industries can operate efficiently and remain profitable. In contrast, Nigeria’s power supply, at just 3,500 megawatts for a population exceeding 200 million, is woefully inadequate for industrial growth.
Instead of addressing the root causes driving industries away—like erratic power supply, high taxation, judicial corruption, and rampant insecurity—President Bola Tinubu’s administration is focused on costly foreign trips in search of elusive investors. Major companies like Procter and Gamble, GlaxoSmithKline, and Unilever have already exited the Nigerian market. The question arises: why would new investors consider entering a market where established firms are withdrawing?
Investors are deterred by inconsistent electricity, burdensome taxes, integrity issues in the judiciary, and widespread insecurity. The reliance on diesel generators, with fuel prices soaring to N1,500 per litre, adds an unsustainable cost burden on businesses.
It’s essential to note that foreign investors are not motivated by mere visits from presidents. If the necessary infrastructure were in place, investments would naturally follow, as demonstrated by the influx of Nigerian entrepreneurs into countries like the United Arab Emirates, where the environment is conducive for business.
Rather than spending taxpayers’ money on international ventures, the government should focus on creating a favorable climate for local businesses to thrive. Ultimately, no country has been developed by foreign investors alone; sustainable growth stems from empowering local entrepreneurs with the support and infrastructure they need. Regular electricity supply and security are the keys to unlocking Nigeria’s potential.
