Anambra State Governor, Chukwuma Soludo has asserted that indigenous Nigerian companies demonstrate a higher risk appetite compared to foreign investors and multinationals.
Speaking at the inaugural Abuja Business and Investment Summit organized by the Abuja Investment Company Limited on Wednesday, Soludo described foreign firms exiting Nigeria as “opportunistic,” noting that they tend to move from one country to another when conditions become unfavorable, according to Channels News.
His remarks emphasize the resilience of local companies in navigating the Nigerian business landscape amid challenges.
He said the “government must learn to derisk certain strategic investment for the private sector” as indigenous “nationals have higher risk appetite to invest in Nigeria”.
The former governor of the CBN addressed the theme of the event, “Optimizing Investment Through Partnerships.”
The summit also featured the attendance of dignitaries, including the Minister of the Federal Capital Territory (FCT), Nyesom Wike, among others.
“Dear friends, there is what we call the new mercantilism and pseudo-nationalism; it’s both a threat and an opportunity. In today’s world, in many countries, new nationalism is back. Economic nationalism is back, new mercantilism is back.
“People are saying ‘America first’. We must be intentional, the agenda of ‘Nigeria first’ as a philosophy is something that we must mainstream. This will require us to intentionally nurture national champions for sustainability.
““If you see the companies that have pulled out of Nigeria, how many of them happen to be national companies? None. The day they have itchy feet, they jump to the next one (country), they are very opportunistic. extremely opportunistic, no emotions to it. So, for long-term sustainability, we must nurture the domestic capital and build them,” Soludo said.
He expressed optimism that both foreign exchange rates and price levels would stabilize, allowing for lower interest rates and a more flexible monetary policy.
This would enable business owners to borrow at reasonable rates, facilitating real returns on investments.
Soludo emphasized that reduced interest rates would bolster domestic investment, as well as attract foreign investment.
Additionally, he highlighted the oil and gas sector as a crucial driver for the Nigerian economy, urging the government to increase daily oil production to around three million barrels per day to enhance foreign exchange earnings.
“In the short to medium term, the oil and gas sector will remain the game changer for Nigeria. It is still going to be very critical,” he said, adding that addressing security challenges and fostering ease of doing business would help fast-track economic recovery.
As Nigeria grapples with an economic crisis triggered by the President Tinubu’s government dual policies of petrol subsidy removal and the unification of foreign exchange windows, several manufacturing companies have exited the country over the past year.
Notable exits include Kimberly-Clark, makers of Huggies and Kotex diapers; US-based Procter and Gamble, GlaxoSmithKline; Unilever Nigeria Plc; Sanofi-Aventis Nigeria; and food delivery services like Bolt Food and Jumia Food Nigeria.
The companies all cited high energy costs and currency depreciation as key factors influencing their decision to leave Nigeria.
