this significant fall in investment inflows to the West African nation can be attributed to the unfriendly investment climate, particularly in relation to the weakening of the currency, and other regulatory and policy risks that are involved. Moreover, the worsening security situation in the country has also adversely affected investors’ confidence, as the government continues to battle militant Islamist groups, organised criminal gangs and other armed groups.
“It is investors’ confidence that drives investment, whether domestic or foreign. Investors are generally very cautious and painstaking in taking decisions with respect to Foreign Direct Investment (FDI),” former Director-General of the Lagos Chambers of Commerce & Industry (LCCI), Muda Yusuf, said. “This is because FDIs are often long term and invariably more risky, especially in volatile economic and business environments. Uncertainties aggravate investment risk. Investors in the real sector space are grappling with structural problems especially around infrastructure.”
Accordingly, he urged the federal government to work out strategies that would restore…
