By John Omachonu
Nigeria is currently being challenged on all fronts, from increasing insecurity to tottering economy and burgeoning debts.
Also, inflation rate is spiraling and unemployment rate is rising with the attendant poverty.
This may have taking the search for a ‘messiah’ as the president in 2023, more daunting as the country requires leadership that could steer the country away from impending ‘doom’ and redirect the ship for a new and purposeful direction.
This can only be achieved through harnessing of existing natural and human resources as well as foreign direct investments.
But, the current report from the nation’s bureau agency, National Bureau of Statistics, (NBS), shows that 24 states of the federation, out of the 36 and Federal Capital Territory failed to attract the much needed foreign investments in the last twelve months. More worrisome is the fact that, of the 24 states, ten, including Kogi and Ebonyi, where the current governors have indicated their intentions to view for the coveted seat, failed to attract foreign investments in the last thirty six months.
The implication is that foreign investors ignored these states of the federation, even as the value of capital importation into Nigeria fell by 30.78 percent to $6.7 billion in 2021 from $9.68 billion in 2020. According to the nation’s bureau agency in its latest Capital Importation report for the four quarters of 2021 which beamed searchlight into the value of fresh investments that flowed into the Nigerian economy in 2021, 24 states failed to attract foreign investments into their states for the last 12 months According to the report, the 24 states include Adamawa, Bauchi, Bayelsa, Benue, Borno, Cross River, Ebonyi, Edo, Enugu, Gombe, Imo, Jigawa, Kaduna, Katsina, Kebbi, Kogi, Nasarawa, Niger, Ondo, Plateau, Sokoto, Taraba, Yobe and Zamfara. The ten states, according NBS, are Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Kogi, Plateau, Taraba, Yobe and Zamfara.Although Dave Umahi, current and outgoing governor of Ebonyi has not declared formally, he had said it in the open severally that he would contest for the highest position in the land. Yahaya Bello, on the other hand, promised to make about 20 million Nigerians millionaires, during his formal declaration last week. Against the background of the few that have indicated their interests, while awaiting more people to indicate their interests, some analysts believe that the need for a choice of credible and purposeful choice, taking into account what they are doing and where they are coming from, is inevitable. The knowledge, according to the analysts makes choice making and planning easily, and hence increases the pace of growth and development.
Capital importation has been viewed as an important element in reducing the high rate of unemployment and poverty in the country.
This is because, it allows for rapid investment, which helps investors to increase their returns and diversify their risks thereby contributing to economic growth of a country or state.
A certificate of capital importation, (CCI) is a certificate issued to foreign investors as evidence of an inflow of foreign direct investment, either as equity or debt; cash or goods.
A CCI is usually issued in the name of the applicant company within 24-48 hours of the inflow of the capital into the country.
It is issued to an authorized dealer on behalf of the Central Bank of Nigeria (CBN) through the local commercial banks.
The certificate proves that cash, equipment or combination of both from foreign investors has been received by an entity incorporated in Nigeria.
Lagos based analyst, who pleaded for anonymity says leadership entails “Thinking beyond the ordinary and looking beyond the shores of a country for contacts and other resources.It also entails proper harnessing of the existing local resources as they need to prove to the whole world that they are capable of managing people’s trusts and resources being entrusted to them.” The questions on the lips of most Nigerians are, if leadership means improving the living standards of the citizens through reduction of unemployment and poverty, “why would a state exist for three years without attracting a single foreign investment;“Why would a leader that travels outside his or her country or state not able to make contacts so as to attract foreign investments? The reports recorded that Lagos outshined other states and the federal capital territory (FCT) to top the list of states that attracted the most investments in 2021. The country’s commercial city attracted $5.8 billion in investment, representing 87 percent of the total capital inflow into the country for the period under review. Abuja (FCT) emerged second top investment destination with $833.4 million. Out of 51 countries that invested in Nigeria, the United Kingdom emerged as the top source of capital investment in 2021 with $2.19 billion. South Africa followed by $1.05 billion in 2021; Mauritius ($690.91 million); and the United States ($677.54 million). The analysts say there is need for our presidential hopeful as well as others aspiring for higher positions to leave commendable records to make the choice of candidates easier during elections. According to the World Bank’s Doing Business 2020 index, which was the latest report, Nigeria ranked 131 out of 190 economies across the globe for running a business — up from 146th place the previous year.The analysts believe that the governments at all levels are still paying lip service to the ease-of-doing-business as foreign direct investments have continued to fall partly due to some obstacles placed on foreign companies wishing to invest in their domains. This is in spite of the existence of the Presidential Enabling Business Environment Council (PEBEC) set up in July 2016 by President Muhammadu Buhari to remove bureaucratic constraints on doing business in Nigeria. Granted that government, particularly, at the centre may have initiated some reforms, resulting in the 2018 Sub national Doing Business report on Nigeria which recorded improvement and the World Economic Forum (WEF), in its 2018 Global Competitive Report which also recognised Nigeria’s business environment as one of the most entrepreneurial in the world and highlighted Nigeria’s improved competitiveness in the enabling business environment, a lot needs to be done. Or else, how can one justify the dearth of foreign exchange, resulting in poor showing of the local currency against international ones and rising rate of unemployment?If our chief executives could not learn or being positively influenced by the activities of the government at the centre, how about their foreign contacts, even during some of the foreign travels.Above all, despite these reforms, the country still faces ravaging issues like kidnapping, killings and attacks on government facilities and security infrastructure.
