World Bank has raised concern about Nigeria’s investment needs, as it lamented her inadequate infrastructure and other challenges.
World Bank Group President, David Malpass, who spoke in Niamey, Niger Republic on the ‘Growth and Stability During Crises’ at the Abdou Moumouni University of Niamey, therefore, called on policymakers to create an environment conducive for investments in Nigeria, and other African countries.
His words: “Developing countries have immense investment needs, given inadequate infrastructure, rapid urbanisation, and escalating climate costs. Capital inflows from abroad will have a role to play in financing these needs. But in these uncertain times, with widespread pressures from debt distress, countries will not be assured of foreign finance.
“The stability and efficiency of domestic financial markets should be at the forefront of policymakers’ efforts to meet domestic investment needs. The COVID-19 pandemic showed that a key attribute of a successful response to the crisis was a diversified investor base.
“This puts a premium on an environment that allows domestic savings to flow to productive private sector firms instead of being channeled to public deficits. This requires a pool of savings and access to domestic financial markets through an enabling environment that includes: regulations that facilitate the entry and growth of private firms; competition in domestic product and financial markets, including a level playing field with state-owned enterprises and the government; transparent access to international markets; effective mechanisms to allow firms to exit when they fail; and clear policies and practices against corruption.”
Nigeria’s foreign investment declines
Capital importation into the country for the production and manufacturing sector crashed by 48.42% in 2022. This is according to the Capital Importation by the Nature of Business data from the Central Bank of Nigeria, CBN.
The data revealed that foreign investments in manufacturing businesses in the country fell from $100.97 million in January 2022 to $52.08 million in November 2022.
