By Femi Adekoya
The Consul General, United States (U.S.) High Commission, Ms Claire
Pierangelo, has blamed some Federal Government’s policies for the low
Foreign Direct Investments (FDI) currently being
witnessed in the
country.
Pierangelo, represented by the Commission’s Commercial AttachĂ©,
Christine Kelley, at the 2019 Lagos Chamber of Commerce and Industry
(LCCI) International Investment Conference, said Nigerians should hold
regulators accountable, stressing that many multinationals, U.S.
companies and foreign investors are discouraged to invest in the local
market because of certain changes in regulatory policies.
“Take a look at the list of the 43 restricted items; it does a lot of
incredible damage to Nigeria’s reputation as a place to do business, and
whenever you see such damages happening to companies who have invested
in Nigeria, speak out to your lawmakers, because this scares investors
away,” she said.
Meanwhile, she said the U.S. is still one of Nigeria’s largest trading
partners, adding that in 2018, trade between both countries stood at
$8.3 billion, but declined in August 2019, to $5.21 billion.She advised
that for Nigeria to have a robust dairy industry, taxes and foreign
exchange to import dairy products must be addressed, saying that the
resulting effects hurt businesses that have already invested in the
country, while also increasing the cost of dairy products for people and
most particularly the poor.
She said: “The government instead must take logical steps to grow the
industry, and create a roadmap with practical time-based steps to build
the industry in a sustainable way, which would attract foreign
investors both local and foreign. This is not just for the dairy sector,
but for all areas Nigeria wants to see growth.”
She noted that industries do not spring up overnight, urging the federal
government to keep creating the enabling environment for investments to
thrive in its quest to achieve sustainable economic development.She
said nations which enjoy FDI inflows provide transparency in business
deals, security, infrastructure and intellectual property protection.
Earlier, the President, LCCI, Babatunde Ruwase, described the generic
theme for the conference, “Promoting investment, connecting businesses”
as most appropriate, as the Nigerian economy is in dire need of private
investments to move the economy forward.He noted that investments help
to create jobs, diversify the economy, grow government revenue, and
improve the welfare of the people.
According to him, Nigeria’s recovery from recession in the second
quarter of 2017, has elicited calls for policies to support sustainable
growth and development.He added that steps have been taken and policies
put in place to ensure revamping of the Nigerian economy through the
promotion of industrialisation and non-oil export for sustainable
economic recovery.
“However, if the recovery is to be sustained, there must be added
drive for domestic and foreign direct investments, promotion of non-oil
exports, and continued efforts at improving the ease of doing business
in Nigeria,” he said.He noted that it is therefore necessary and
critical that the government provides an enabling environment that will
encourage investors to invest in the Nigerian economy by addressing the
security challenges in the country, and ensuring improved regulatory
framework.
A Senior Lecturer, Department of Economics and Business Intelligence,
Lagos Business School, Pan-African University, Bongo Adi, said although
Nigeria has moved up the ladder on the Ease of Doing Business index,
growth is not inclusive.He said while Nigeria’s Return on Investment
(RoI) remains the highest in Africa, key determinants for FDI like
trade, capital inflow and Diaspora remittances need to be addressed.
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