We love drama in this country. According to recent media reports, some American investors who control portfolio worth trillions of dollars are coming to Nigeria for investment talks with top Government officials and the business community. Ordinarily, this should be cheering news. As usual, there is a lot of frenzy in the air and propaganda on the social media. The so-called “influencers” have taken over the media space by engaging in acrobatic dances. It looks as if this is the first time investors are visiting Nigeria since independence in 1960. From all indications, the foreign visitors are already assured of effusive welcome. However, there is a caveat. The nagging issue which continues to beg for answer is whether Nigeria is actually investment ready. Since the return to civil rule in 1999, the record of former President Olusegun Obasanjo (1999 to 2007) as a globe trotter remains unbeatable. He travelled all over the world in search of foreign direct investment. At the tail end of his administration, he confessed that despite all the talks with foreign investors and tonnes of promises, there was nothing to show. He only got warm handshakes and beautiful smiles from his hosts. Obasanjo was very honest and blunt on the outcome of his economic diplomacy and elusive search for foreign direct investment. Despite the poor response of foreign investors, one fact that is undeniable is that Nigeria’s economy was more robust during Obasanjo’s presidency than the situation today.

At present, Nigeria’s economy is facing a lot of challenges due mainly to accumulated years of leadership failure, lack of political will to do the needful, wrong fiscal policies, huge local and foreign debts, endemic graft, malfeasance, pervasive corruption, excessive bureaucracy, multiple taxation, high level of revenue leakage due to massive looting, infrastructure deficit, population explosion, energy crisis and hyperinflation. The ugly situation has led to the closure of several businesses, mass unemployment, economic despair, hopelessness and weaponization of poverty in the country. Poverty walks on four legs as the value of the national currency continues to depreciate. Majority of the citizens are living from hand to mouth as they swim in the ocean of poverty. There is a daily struggle for economic survival.

The energy crisis remains a daunting challenge. Successive administrations have invested billions of dollars on the power sector since 1999, but power supply remains erratic. The power sector reform of 2013 during the administration of former President Goodluck Jonathan has not yielded the much-expected impact. A decade after the reform, we are still talking of megawatts of darkness! The manufacturing sector is groaning due to high cost of power generation. The cost of petroleum products, especially diesel, is prohibitive. This has resulted in high cost of production and relocation of some manufacturing companies to other countries. For the past three decades since the regime of late General Sani Abacha, Nigeria relies totally on imported fuel as the local Government-owned refineries are moribund. Fuel importation alone has become a huge elephant in the room and an albatross on the macro economy. It is a major drain on the treasury. Until the removal of subsidy on May 29, 2023 by President Tinubu in his inaugural address, fuel importation gulped the lion share of annual budget.

For Nigeria to make a headway in its foreign direct investment drive, the power and energy sectors require priority attention. Investment, whether local or foreign, needs a conducive environment to thrive. There is need for a complete overhaul of the power sector value chain- generation, transmission and distribution to change the current narrative. The power sector is the backbone of any economy. In the same vein, the Government must take a definite decision on the moribund refineries. Fuel importation is a major drain on Government resources especially foreign exchange. It is not sustainable. The Federal Government should consider Public Private Partnership (PPP) template to revamp and run the refineries for efficiency and optimal production. As a major oil producing country, Nigeria has no business importing petroleum products. It is a huge embarrassment. There is urgent need for a paradigm shift.

Priority attention should be given to local investors through provision of incentives and enabling environment to boost the economy and create jobs. The opportunities available in the digital technology space should be fully tapped for income generation, poverty reduction and sustainable livelihood. There is a huge demand for digital technology skills globally. This sector alone can provide jobs for millions of youths and reduce youth unemployment.

Agriculture holds the key to food security. However, the cost of local food items is beyond reach. This is partly due to high cost of farm inputs and transportation as well as insecurity. Insurgency and banditry have impacted negatively on agricultural production especially in the North. As the military continues to tackle insecurity, there is need for massive investment in the agricultural sector to feed the teeming population of over 200 million people.

Based on the current situation in the country, the economy requires a stimulus package to reduce economic hardship and high level of poverty. The role of development partners notably the World Bank, International Development Association, African Development Bank, European Union, Japan International Cooperation Agency, United Nations Development Programme, United States Agency for International Development, United Kingdom Department for International Development, the Consultative Group on International Agricultural Research, French Development Bank, German Agency for International Development and several others cannot be overemphasized.

The revenue base of the country has to be expanded to reduce dependence on crude oil receipts. The policy initiatives already mapped out for the solid minerals sector as well as marine and blue economy require accelerated action. The same thing applies to the creative/entertainment industry. We need to walk the talk. Foreign debts have to be rescheduled to give the economy a breathing space. A situation whereby the country is spending about 96 per cent of its total revenue on debt servicing is not desirable. It is counterproductive as it imposes severe limitations on the macro economy and provision of critical infrastructure. We need to take the country back and restore hope for shared prosperity.

The challenges confronting the country are not insurmountable. Visionary leadership and strong political will are crucial. Lee Kuan Yew did it in Singapore and his legacy continues to endure. There must be a total crackdown on graft and zero tolerance for
corruption to move the country forward. What we need to emphasize now is action not mere talks.