The Managing Director of Cowry Asset Management Limited Johnson Chukwu said that Egypt’s Foreign Direct Investment (FDI) receipt was seven times more than Nigeria’s.
He made this remark at a virtual workshop by the Capital Market Correspondent Association of Nigeria (CAMCAN) themed, ‘Addressing Nigeria’s Fiscal Challenges – Exploring Alternative Fund Approach’.
Chukwu said that the country’s regulatory authorities needed to devise appropriate policies that would attract FDI, with a focus on foreign exchange.
He said, “It is a far cry compared to countries like Ghana whose receipt are two times what Nigeria realised and Egypt which is seven times what we received. FDI is an important source of capital funding for a country like Nigeria. Nigeria needs to come out with appropriate policies that will attract FDI, especially on foreign exchange.
“As such, the dent of the social unrest to the image and perceived risk of long-term capital investment would mean that the country will struggle in attracting the much-desired long-term finance needed for accelerated growth and enhanced job opportunities.
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“The challenge we have in this country is a revenue challenge, we don’t have the revenue size to support the type of government we run, that’s why our recurrent expenditure has been increasing while our revenue remain flat. The government needs to interrogate issues of recurrent expenditure.
“We sustain our positive outlook for the Nigerian bourse in 2021 as its overall positive performance in 2020.This is also justified by the strong fundamentals of the several quoted companies on account of their resilience during the pandemic and the likelihood that they will remain resilient in 2021.”
What You Should Know About FDI
They are investment made by a company, individual or a country, that is based in another country.
FDIs are generally conducted in open markets and not closed markets for investors.
An example of an FDI is Innoson’s investment in Germany.