How to promote FDI inflow, infrastructure devt, by experts
As Nigeria seeks to diversify its economy, stakeholders in the Organised Private Sector (OPS) have urged government to articulate new strategies that would reposition the country to attract more Foreign Direct Investments (FDIs) and boost infrastructure.
The stakeholders, at a one-day seminar, organised by Akindelano Legal Practitioners (ALP) in Lagos on Wednesday, submitted that the new strategies that would be adopted would make Nigeria more competitive in attracting FDIsto promote the country’s diversification programme.
Specifically, the Investment Banking Infrastructure Manager, RMB Nigeria, Rachel More argued that there was need for government to provide an enabling economic environment for influx of FDIs.
Besides, she pointed out that there must be transparency, consistency of policy and regulation in the system.
She noted that any economy that operates in an environment where there is inconsistency in policy and regulation would continue to deter both local and foreign investment in the country.
She explained that the competition for global FDI has become stiffer, urging government to tackle militating hurdles and pursue more credible and sound macroeconomic policies.
A Director and Head of FBN Quest’s Debt Solution Department, Patrick Mgbenwelu, explained that the current state of foreign exchange structure and poor infrastructural facilitiescould be the bane of Nigerian development.
He however maintained that FDIs have played a critical role in accelerating infrastructure growth in other foreign jurisdictions.
“FDIs flows where there is stable government, clear and consistent policy, and an investor -friendly environment. According to one of the leading African regional banks, Nigerian infrastructure gap currently stood at 60billion to be extended over the next 10 years.
“They are different figures depending on which project you are focusing on. This represents a significant pipeline opportunity for investors and financiers inemerging economy.
“The result of this produces not only social growth for the populace but also creation of jobs, poverty reduction and growth in the non oil sector.
Nigerians banks have played pivotal roles in financing infrastructural projects.
“One of the major constraints is that the Nigerian banks is still not able to provide long term funding no matter how much liquidity you have if you cannot finance infrastructure that is so much highly capital intensive, if you do not have long term liquidity, you can as well change the subject,” he added .
A Manager from ARM Herith, Opuiyo Oforiokuma noted that FDIs and infrastructure development are critical for Nigeria’s diversification of its economy and economic development.
He added that government needed performance management to build a growing economy like Nigeria.
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