The Executive Secretary/Chief Executive of Nigerian Investment Promotion Commission (NIPC), Mrs. Saratu Umar, has said that with about 180 Investment Promotion Agencies (IPAs) globally competing to channel Foreign Direct Investments (FDIs) to their respective countries, the commission is better prepared to ensure that Nigeria gets a fair share of the global market.
Speaking at a stakeholder engagement forum with states IPAs in Abuja, she said Nigeria remained a resource-rich country with a potential that is unrivalled by any other country in the world, adding that the potential was yet to be fully harnessed.
Umar said, “The level of resource mobilisation is insufficient to harness this potential for inclusive growth and national development, and this is where the role of investment promotion comes in to attract Foreign Direct Investment (FDI) and mobilise Local Direct Investment.
“Global FDI market over the last decade have become very competitive and versatile where the investment promotion thrust of successful jurisdictions that are attracting the largest global market share of FDI inflows are driven by effective, efficient and performance driven Investment Promotion Agencies (IPAs).”
She pointed out that the commencement of the Africa Continental Free Trade Area (AfCFTA) agreement makes it imperative for the country to enhance its investment promotion drive and outclass other economies within the area, in order to remain the preferred investment destination of choice.
According to her, with ACFTA, an investor could establish operation in any African country that is signatory and still access the Nigerian market.
However, the NIPC boss maintained that Nigeria’s investment promotion drive was currently largely fragmented thereby “depriving us of cohesive leverage we could have achieved if we synergized our efforts and resources”.
She said the coordination of investment promotion activities between the National IPA, NIPC, and sub-national IPAs for the effective implementation of investment promotion activities was largely absent.
Umar said, “As NIPC strategises to increase national attractiveness and branding to position Nigeria as a constant preferred investment destination of choice, strategies at the national and subnational levels to deepen investment promotion drive of Nigeria and the day-to-day problem-solving for established and incoming investors must be developed, harmonised and implemented.
“Country level effort should be created for investment promotion under the coordination of the national IPA, NIPC and protocols put in place, to avoid a ‘race to the bottom’ conduct, which will eventually be detrimental.”
She pointed out that “The central and strategic role of the NIPC in the coordination of all investment promotion should therefore, be activated to ensure Nigeria’s investment promotion drive is given traction to onboard investments into the different sectors of the economy in a bid to facilitate economic growth and national development as well as job creation, import substitution, foreign exchange generation and reduction of our reliance on debt amongst others.”
Among other things, Umar said under the National Investment Coordination Framework being evolved, NIPC will provide a clear strategy for a seamless collaboration and coordination of the investment ecosystem as well as usher in a robust and effective stakeholder communication and engagement.