In the heart of Nigeria lies an untapped treasure trove of opportunities spanning diverse sectors. From agriculture and water resources to steel production, manufacturing, housing, transportation, and the vibrant realms of music and fashion, the nation’s resources stand ready, more than ever before, to be explored. In a resounding chorus of support, FirstBank and other esteemed financial institutions have pledged their commitment to back these resources with a goal to explore these abundant resources and also deepen the influx of Foreign Direct Investments (FDIs) into the Nigerian economy. Assistant Business Editor Collins Nweze reports
There is no better time than now for foreign investors to invest in Nigerian economy. To make this a reality, the Federal Government took the desire to attract new Foreign Direct Investments (FDIs) to the economy to the 2023 United Nations General Assembly held in New York, United States. President Bola Tinubu, accompanied at the event by the Minister of Industry, Trade and Investment, Uzoka-Anite, encouraged Nigerians in the diaspora to drive foreign direct investment into the country.
“I enjoin Nigerians in the diaspora to invest in Nigeria. I know the spirit of being a Nigerian because I am one. We are very prosperous, resilient, persistent, bold, audacious. We like to make decisions in our favour profitably. We are also very warm and welcoming. Galvanising all these qualities and focus it back home will lead to us doing a whole lot,” he said.
The commercial banks were also desirous of getting the foreign investors and Nigerians in Diaspora to key into the opportunities in the country. There was also the Africa International Trade Exhibition (A.I.T.E 2023), New York, held on the sidelines of the 78th Session of the UN General Assembly (UNGA). Following the event, the Managing Director/CEO, First Bank of Nigeria Limited, Adesola Adeduntan, reiterated the bank’s drive to promote foreign direct investment, whilst being the bank of first choice to foreign businesses keen on investing in Nigeria and other African Countries. In a media interview monitored by this correspondent, Adeduntan said the event, backed by FirstBank, was one of the strategic sideline events that the Nigerian government put up as an integral part of the United Nations General Assembly.
He said President Tinubu has embarked on economic diplomacy, essentially to attract foreign direct investment needed to accelerate economic growth. Adeduntan said: “FirstBank is working with like-minded entities like Bank of America to put together Nigerians investors, Nigerians in Diaspora to brainstorm with the President in terms of what are those critical policy changes that the government will need to enact to ensure that Nigeria becomes the preferred destination for foreign direct investment. The contributions were quite solid and I am very optimistic about the inflow of foreign direct investment to our country.”
He said that as CEO of FirstBank, an institution that has been in existence for 120 years, there is no other entity that is well placed to speak about investment in Nigeria and investment on the continent better than FirstBank. “So, we basically showcased to the people who attended the event, the investment opportunities in Nigeria and how to navigate all the hurdles that they may come across, but more importantly, the kind of rewards that await people who are able to invest in Nigeria.”
Adeduntan highlighted the remarkable trend where numerous foreign investors not only met but exceeded their projected returns within a shorter timeframe. He emphasised the vast opportunities present in the region, stressing that the substantial domestic market exceeds 200 million people, positioning Nigeria as the central economic force in West and Central Africa. He concluded that investors are bound to thrive in Nigeria’s thriving market. “We only had these huge opportunity on the back of the fact that we have now created a single African market on the back of the African continental free trade zone. So, a big investor in Nigeria, essentially gains not just access to Nigerian market, but to the entire African market. But you will also look at the projections that in another 10 years or so, the population of Africa is expected to be bigger than China.
“So, just imagine a market that is bigger than China in another couple of years. That is the market that we showcase essentially to foreign investors. And I believe we’ve successfully convinced them that coming to Nigeria is akin to coming into Africa. The opportunities are huge; they’re quite significant. But most importantly, they are also coming in at a time when President Tinubu is focused on creating an enabling environment that fosters economic growth,” he said.
While highlighting the positive trajectory for investors in the near future, Adeduntan expressed confidence that in the next five years, saying current investors in the economy will reap substantial rewards. He emphasised the crucial role of FirstBank and other private sector entities in showcasing the possibilities and providing financial support to businesses once they materialise. “The President is focused on creating an enabling environment that allows foreign direct investors to come into our country to foster economic growth and development. The President has been very emphatic his agenda is about inclusive growth, which is quite significant. So, I think the time is right. Anybody that find his/her way into our country at this particular point in time, in another five years, that person will be smiling to the bank,” he said.
He said the bank is willing to finance top five or 10 big projects like the Delta Steel Company, which is one of the investments that will attract further investments and promote economic growth. Also, it is difficult to build an economy without cement or steel. Adeduntan said the President has been speaking about building infrastructure, you cannot build infrastructure without steel, for example, you cannot build infrastructure without cement. “So, if there’s any takeaway from the conference, it is for the government to define a couple of top priority areas or projects where they will want investors to come in. And if you can just get three serious investors into those areas, Nigeria will be better for it. Also, Indorama has promised to invest $8 billion into the economy. Such is an example of serious investments, and if 10 of such investments can be attracted, the economy will be better for it.
“We do have the balance sheet to support these big ticket transactions. The Nigerian banking sector has also matured significantly. We also do have structuring capabilities that allows us to lead the fundraising effort for this kind of transactions. I am very optimistic that with the kind of leadership that the President is providing, especially in the area of economy, the future is very bright for the economy,” he added.
The Africa International Trade Exhibition was themed “the imperatives of global trade for African SMEs as a game changer for the continent’s future prosperity.” Woven into the fabric of society, with the rich heritage of being the premier bank in West Africa, FirstBank’s sponsorship of the event reiterated its commitment to being the bank of first choice and financial gateway in supporting businesses to boost the growth and socio-economic development of the continent in today’s fast-evolving business landscape.
Visioner of the African International Trade Exhibition project, Tunde MacAlabi, said “The AITE project is conceived to assist African SMEs to gain greater penetration in the North American market that has huge potentials.” He said the African American population in the US is 30 million strong, spending close to $1.2 trillion as consumers. “The popularity of our Afrobeat music, the ground that it is gaining in North America and the globe is remarkable. With this idea, pushing authentic African made products into the market to ride on the wave of the popularity of our music can diversify the sources of foreign exchange income that we accurately need in Nigeria and Africa. Our effort is a complementary private sector driven initiative to help bridge the commercial gap to increase the commercial engagement between Nigeria, Africa and the USA.”
Adeduntan, said: “I am particularly delighted that this year’s theme beams the spotlight on a sector that can be referred to as the bedrock of Africa’s economic prosperity. Africa’s SME sector is also a good representation of the unyielding and resilient spirit of the African people in the face of many daunting challenges.
“With a vision to become Africa’s bank of first choice, FirstBank’s commitment to the development and economic transformation of the African continent is unwavering and we will continue to make the required investments to actualize this goal. I make bold to say that, in FirstBank, Africa has a dependable ally. Indeed, it is the turn of Africa to rise, and FirstBank is strategically positioned to provide the required financial services support to the SME sector that will catalyze the next phase of Africa’s growth and development,” he concluded.
SMEs’ roles in economic development
Representing Prof. Benedict Okey Oramah, President & Chairman, African Export-Import Bank (Afreximbank), Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade, African Export-Import Bank (Afreximbank) said “I am grateful to the African International Trade Exhibition (AITE) for the kind opportunity to participate in this event. I congratulate AITE for building this unique platform to rally global investments and policy support towards the attainment of the goals of the African Continental Free Trade Agreements. These activities of AITE are significant complements to Afreximbank’s trade facilitation agenda. We are therefore pleased to be associated with AITE and its activities.
“We must continue to leverage the platforms created by the Bank and AITE to forge partnerships, share ideas and contribute to the growth and development of African SMEs to ensure that their potentials as the driving force for the transformation of the continent. As l like to say, the opportunity is now, and it has a shelf life.”
Awani said the programme is helping to rally global investors, adding that SMEs are the fulcrum on which all economic activities revolve. She, however, said that the plight of SMEs has worsened in recent years and the programme was a great opportunity to lift SMEs. According to her, SMEs contribute to sustainable growth and employment generation including creating over 80 per cent of private jobs and 90 per cent of overall employment in an economy.
Other experts said SMEs are becoming more and more present in the countries’ economies. They play a significant role in national economy by providing various goods and services, creating job opportunities, developing regional economies and communities, helping the competition in the market and offering innovation. They said SMEs development, together with the FDIs, seems to be the only two alternatives at this phase but we have to recognise the second alternative is not that advisable because the economy may be dominated and depending from the business conditions or policies defined by the foreign capital companies. Therefore, the role of SMEs that creates corporations and conduct business activities is very important. So, the main objective is to ensure incentives for such activities while promoting business practices that enhance the fair competitiveness among them.
Minister of Aviation and Aerospace Development of Nigeria, Festus Keyamo, noted that “the importance of the aviation sector in Nigeria and any country cannot be overemphasised. The gains of the African Continental Free Trade Area (ACFTA) cannot be realised without a robust aviation policy in Africa that will enhance the movement of goods and personnel across Africa.”
