The Private Equity and Venture Capital Association of Nigeria has announced that international investors are reluctant to execute the over $30 billion in investment pledges made in the country, due to the volatility of Nigeria’s foreign exchange market.

The group stated this in its mid-year review and strategic outlook for the country which explored the private investment landscape and factors shaping trends in the sector, according to Nairametrics.

The group stated that problems with foreign currency repatriation have made investment risk in the nation worse by undermining private sector investments through lower private sector consumption and higher levels of inflation, using the FMCG sector as an example.

It further stated that only a particular set of investors find quick investments appealing due to the existence of significant risk, including difficulties with getting foreign exchange out of the nation.

With strong long-term plans, political connections, or a high willingness to take risks.

However, it is noted that this group are in the minority and is quite small.

The report states, “Minister of Trade and Investments, Doris UzokaAnite, highlighted in February this year that direct engagements with foreign investors have resulted in substantial interest and commitments totalling USD 30 billion since Tinubu’s inauguration.

“Despite these commitments, actual investments have yet to materialize due to investor apprehension over the forex market’s instability.”

It clarified that a vicious loop including sluggish investor activities that reduce the likelihood of a market recovery is created by the delay in executing the $30 billion investment pledges.

Recall, the Minister of Industry, Trade, and Investment, Dr. Doris Uzoka-Anite revealed earlier in the year that Nigeria had received pledges of about $30 billion in investments from different companies.