Aso Rock has a new resident, signaling a change in leadership for Nigeria. President Tinubu faces numerous urgent policy challenges that demand his attention. However, to successfully rebuild the country and attract foreign investors, he must go beyond achieving policy outcomes. He needs to reshape Nigeria’s perception, change the narrative, and rebuild trust with investors who have been wary of the country in recent years.
The decline in foreign direct investment (FDI) under President Buhari’s administration has been significant. Annual FDI dropped from $1.45 billion in 2015 to $698.7 million in 2021 and further to $468.08 million in 2022, as reported by the National Bureau of Statistics. Insecurity, crumbling infrastructure, economic strain, pervasive corruption, and a lack of effective crisis management have deterred investors. They have lacked confidence in the ability to retrieve their investments from Nigeria.
Transitioning to a new president usually presents an opportunity for a national reset. However, President Tinubu enters office amidst corruption allegations from his time as Lagos Governor, although he denies them. He is also viewed as a prominent political Godfather, and his election victory is being contested due to allegations of vote rigging. Some of Tinubu’s supporters even face US sanctions, indicating concerns about Nigeria’s trajectory.
Nevertheless, despite the election dispute, many expect the court to uphold the result. While Tinubu carries baggage, his effectiveness cannot be denied, even by his harshest critics. With his history as a political fixer, he might be capable of administering a complex country that has long suffered from poor governance. Perhaps now, forced to confront insecurity and corruption directly, he will leverage his significant power to address these challenges.
Prior to the election, Nigeria’s elites believed that any of the three main candidates would be an improvement over the Buhari administration. They expected the winning candidate to understand the business better and assemble a capable team to deliver results and inspire global investors. President Tinubu is reportedly forming a formidable team, including Wole Edun, a respected businessman, and philanthropist who served in Tinubu’s Lagos administration. This suggests a higher level of economic competency within the new administration.
Ultimately, Tinubu must win back investors’ confidence and entice them to invest in Nigeria. The country represents the unfulfilled promise of Africa, boasting a fiercely entrepreneurial population and substantial untapped potential. Despite past mismanagement, Nigeria’s economy remains substantial, making it an attractive choice for those seeking to expand into sub-Saharan Africa. Effective governance and communication can convince investors, even those previously burnt by Nigeria, to reconsider.
Tinubu faces the challenge of delivering immediate results. He must implement policies to combat insecurity, end the fuel subsidy that discourages oil sector investment, and tackle corruption, which hampers businesses. Additionally, he must adeptly communicate with investors from both the East and West, crafting a compelling narrative about Nigeria’s turnaround. Like any struggling business under new management, Tinubu must demonstrate a willingness to learn from past mistakes, address criticism, and implement necessary changes to regain investors’ trust.
Although it is an uphill battle, Tinubu’s renowned effectiveness positions him uniquely to undertake this task. Nigerians anxiously await his performance, hoping that he can deliver the necessary changes.
