Abba Hamisu Sani
Africa-Press – Nigeria. President Timubu’s Presence at the G20 summit in India is another milestone towards boosting the Nigeria’s foreign direct investment as it attracts additional fourteen billion dollars investment in various sectors of the economy
Presently Nigeria is India’s largest business partner in Africa with a fifteen billion dollars Investment.India also remains one of the largest buyers of Nigeria’s crude oil and it owns more than 135 companies in Nigeria.
Nigeria’s relationship with India is a long one as entire generation of Nigerians from Northern and Eastern part of the country were taught by Indian Teachers, treated by Indian Medical Doctors and grow up wearing Indian clothing in addition to watching Indian movies particularly from 1970’s to 1990’s.This close intimacy made it more easier for Indian products and services to be more acceptable in Nigeria.
The imperative of attending G20 summit by Nigeria’s President
As the Nigeria’s economy witnesses allot of set back within recent years couple with the fact that more foreign companies are leaving the country due to different challenges, the most populous nation in Africa need to intensifies effort in attracting more investment for revenue and employment generation purposes.G20 meeting is a very good opportunity to achieve the aim of promoting Nigeria’s investment opportunities.
Nigerian leader President Ahmed Bola Tinubu leads 38 Nigerian business tycoons that include the richest African man and the President of Dangote group Aliko Dangote ,Tony Elumelu who is the chief Executive Officer of the United Bank for Africa , Ovia Onyema, Femi Otedola and the President of BUA Group Abdussamad Rabiu to the 2023 G20 summit in New Delhi India.
The Group has 19 Countries as members and European Union.Its members represent around 85 percent of global Growth Domestic Product (GDP) and over 75 percent of the global trade. The19 Countries are ; Argentina, Australia ,Brazil, Canada,China, France, Germany, India, Indonesia, Italy,Japan ,Mexico ,
Republic of Korea , Russia, South Africa, Saudi Arabia, United States of America, United Kingdom, and Turkey.
14 billion dollars of new Investments from India
Among these new investments, Indorama Petrochemical Limited has pledged a new investment of eight billion U.S. dollars in the expansion of its fertilizer production and petrochemical facility in Eleme, Rivers State. Jindal Steel and Power Limited, one of India’s largest private steel producers, has committed to investing three billion U.S. dollars following discussions with the President.
Founding President of SkipperSeil Limited, Mr Jitender Sachdeva, announced an investment of 1.6 billion U.S. dollars for the establishment of 20 100 MW power generation plants across the states of Northern Nigeria, amounting to 2,000 MW of new power within the next four years.
President Tinubu approved the finalization of a new one billion U.S. dollar agreement to bring the Defence Industries Corporation of Nigeria (DICON) to 40 per cent self-sufficiency.
This will include local manufacturing and production of defense equipment in-country by 2027 through a comprehensive new partnership with the Managing Arm of the Military-Industrial Complex of the Indian Government.
Bharti Enterprises, a major first-generation corporation in India with interests in telecom, space communications, and digital solutions, has expressed its commitment to invest an additional 700 million U.S. dollars in Nigeria.
President Timubu’s reactions to the development
Ajuri Ngelale is the Special Adviser to the President Bola Ahmed Tinubu on Media and Publicity. He said President Tinubu has pledged that Nigeria will give the best returns for any new investment as well as create the best business-friendly incentives for foreign businesses.
The President stated this at the Nigeria-India Presidential Roundtable and Conference in New Delhi, India, as part of activities on the lines of his official visit to the G20 Summit held between September 9 and 10.
The Presidential Spokesperson disclosed this in a statement recently in Abuja
The Special adviser on Media said Tinubu commended Indian investors for significant investment pledges amounting to nearly 14 billion U.S. dollars committed during the meeting.
‘’We are ready to give you the best returns on investment possible; there’s nowhere else like our country. Nigeria offers the best returns for investment today, so invest now.” The Nigerian leader said.
President Bola Tunibu said his administration would ensure that agreements manifest in industries and jobs on the ground in Nigeria.
He commended all Indian companies and individuals who have responded positively to his administration’s efforts to improve Nigeria’s macroeconomic and investment climate.
“Do not procrastinate. Don’t be frightened about investments in Nigeria. Bring it on. Ask your questions and make your requests.
The trade and investment opportunities are enormous. I have a team, and I am the captain of that team, and I assure you that we will solve problems,” .Tunibu stressed
He said that Nigeria has good economic policy for investors as well as able men and women in leadership who can drive the goal of broad prosperity through investment and infrastructure.
“I will captain and lead the course of investment, development, and prosperity for the largest democracy in Africa and for investors from the rest of the world,” the President said.
Tinubu reiterated that Nigeria was open for business with intelligent, innovative, capable, and highly committed individuals in government who are ready to drive the largest economy in Africa to destiny.
The President also told the Summit that he is proud that the Nigerian stock market had broken records in its consistent bullishness since he assumed office.
Nigeria Plays a good hand at the G20 Summit
Fredrick Nwabufo, also known as Mr One Nigeria, is a media executive and Public affairs analyst.He said there seems to be a transition. A metamorphosis from the quotidian loan-driven articulations to investment-tailored pursuits and commitments.
The analyst said Nigeria has, over successive administrations, hypothesized borrowing in its bucket of foreign economic interests.
The Media Executive stated this in a write up titled “G20: When Nigeria goes fishing” recently published by the Premium Times.
These borrowings have over time put a cosmic strain on government revenue. Nigeria’s external debt stands at over 49.85 trillion Naira ( 63141226340.00 U S dollars ) and with about 73 per cent of its earnings used for debt servicing.
In June, the Debt Management Office (DMO) described Nigeria’s debt service-to-revenue ratio of 73.5 percent as unsustainable and a threat.
“The country’s debt stock remains sustainable under these criteria, space has been reduced when compared to Nigeria’s self-imposed debt limit of 40 percent set in the medium-term debt management strategy (MTDS), 2020-2023. On the other hand, the debt service-to-revenue ratio at 73.5 percent in 2023 exceeds the recommended threshold of 50 percent due to low revenue, which means that there is a need to significantly increase government revenue. Under the alternative scenario, the total public debt-to-GDP ratio at 45.4 percent in 2023 exceeds Nigeria’s self-imposed debt limit of 40 percent.“ The debt management office stated.
In May, KPMG warned that Nigeria might spend over 100 per cent of its revenue on debt servicing. Clearly, a shift from this status quo has not only become necessary but also critical for the survival of the nation.
Nigeria has a revenue challenge, but with unchecked borrowing, this problem becomes compounded. So, the government has to come up with innovative measures of driving revenue, as well as enchanting investment, while weaning itself off prodigious borrowing.
In August, President Bola Tinubu said his administration was committed to breaking the cycle of overreliance on borrowing for public spending, which results in the burden of debt servicing. The direness and exigency of the time demand this forward-thinking, innovation, and discipline. Borrowing has its edge, but when unmitigated and without financial discipline, it becomes an encumbrance to growth.
Mr Nwabufo added that Nigeria has played a good hand at the G20 summit in India. The country went fishing for investments, partnerships, and not for loans. This is a diametrical shift from the status quo. As it is today, it is much more prudent and decent to go fishing for opportunities for the country than to go borrowing.
However the investment between Nigeria and India is about to reach 19 billion dollars as the additional investment of 14 billion dollars is under way plus the existing 15 billion dollars.
Such investment on different sectors of the economy that include petrochemical, fertilizer ,Tell communication and iron and steel will create more opportunities for revenue and job creation to the teaming Nigerian Youths.
Another dimension of the take away from the meeting is exposing Nigeria’s business community that are part of President Timubu’s entourage to that of G20 countries.
Also, Tinubu’s presenting himself as the captain searching for foreign investment will give the investors full hope to come and invest in Nigeria, a country of 220 million people with vast natural and human resources.
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