Onuesoke faults Femi Adesina over inflow of foreign investors to Nigeria
...says over N1.77 trillion foreign investments divested from Nigeria
Delta State governorship aspirant, Chief Sunny Onuesoke on Tuesday, faulted the statement of Special Adviser on Media and Publicity to the President, Mr Femi Adesina that the security challenges bedevilling Nigeria does not stop foreign investors from transacting businesses in Nigeria.
The chieftain of the People’s Democratic Party (PDP), in a statement, said the persistent security challenges in Nigeria is a major distraction to foreign investors who have been pulling out their investments out of the country.
Femi Adesina who was fielding questions from Channels Television said the security challenges bedeviling Nigeria will not stop foreign investors from coming into the country to do business.
Onuesoke described Femi Adesina’s insinuation as mere consolation.
The PDP Chieftains argued that if insecurity is a panacea for the attraction of foreign investors, the rate of foreign investors would have increased, but the reverse is the case with over N1.77 trillion foreign investments divested from the country in the last two years as a result of insecurity.
“The prevailing insecurity in the country and other macroeconomic challenges have continued to hamper investment in the stock market, with foreign investors pulling out N1.64 trillion from the market in three years. In 2018, N642.65 billion in foreign portfolio investment outflow was recorded, while foreign investors withdrew N523.42 billion and N481.93 billion during the corresponding period in 2019 and 2020,” he recalled while quoting a Guardian newspaper opinion report.
The PDP Chieftain argued that it will be naïve enough for an investor to close his eyes to insecurity or any other investment risk that has the capacity to jeopardise his investments, stressing that without caring about profit, an astute foreign investor will take flight with at least, the principal amount when danger is real, perceived or anticipated.
“The spate of security crises, a tough business climate, and policy inconsistency are among the factors that cut Nigeria’s Foreign Direct Investment (FDI) to $875 million in the second quarter of this year, the lowest since 2016. This was contained in a presentation by the Chairman, Presidential Advisory Committee on the Economy, Prof. Doyin Salami, for the Nigeria Economy Summit Group (NESG),” he recalled.
Instead of living in a life of consolation, Onuesoke advised that the government should match words with actions in dealing with the security challenges in Nigeria, adding that once it is handled foreign investors will flow into Nigeria hence investment opportunities are bound in all nook and cranny of the country.
“The security agencies should be properly trained and equipped to ensure efficiency and effectiveness in their operations. The government should also avoid the temptation of politicizing insurgency and herdsmen attack of various villages throughout the country, but treat them as an enemy in the wheel of progress of the country.,” he advised.
The Presidential spokesman said those thinking like an investor know that it is in challenged areas that is best to invest because they are attracted to a very attractive rate and when those challenges are surmounted, they will make a lot of quick returns on their investments.
