The Federal Government is targeting an investment inflow of N14.67tn into the economy before the end of the 2017 fiscal period, figures obtained from the Ministry of Budget and National Planning have revealed.
The proposed investment inflow of N14.67tn when compared with a total Investment of N13.6tn for 2016 represents an increase of N1.07tn.
A breakdown of the figure showed that the private sector is expected to make the highest form of investment in the 2017 fiscal period with N10.75tn.
This is an increase of N596bn over the N10.16tn investment, which the sector made in 2016.
Based on the plan, the Federal Government is expected to make a total investment of N2.05tn in 2017 as against the N1.58tn investment it made in 2016.
For the state governments, a total amount of N1.85tn investment is being expected from them; the same amount was reportedly made last year.
In order to achieve the objective of stimulating investment, the Federal Government is planning to provide incentives to support industrial hubs, and review local fiscal and regulatory incentives to support the development of industrial cities, parks and clusters, especially around existing ports and transport corridors.
There are also plans to revitalise export processing zones by reviewing local fiscal and regulatory incentives; rationalise tariffs and waivers on the equipment and machinery imports required for agro-industry; and establish special economic zones to provide dedicated infrastructure to support hub productivity.
There is a plan to promote local content by sourcing raw materials and spare parts locally, leveraging public procurement of locally manufactured goods and expand the capabilities of the Bank of Industry to enable it to support manufacturing firms through low cost lending.
Commenting on the investment drive, analysts said there was a need for the government to make it easier for people to do business in the country, adding that the poor perception of foreign investors about the Nigerian business climate was one of the major reasons for the huge decline in investment inflows into the country.
The Managing Director of an investment promotion firm, Footprints for Africa, Mr. Osita Oparaugo, explained that while there were huge investment opportunities in the country, the harsh operating environment was limiting the interests of investors in key sectors of the economy.
Oparaugo, whose firm is currently into partnership with five African countries including Nigeria on investment drive, urged the Presidential Enabling Business Environment Council to quickly commence the process of identifying and reducing the bureaucratic processes and regulations that impeded the private sector.
PEBEC was set up by the Federal Government in October last year to improve Nigeria’s ranking in the ease of doing business index and is being chaired by Vice-President Yemi Osinbajo.
Oparaugo said as part of efforts to correct the poor perception of foreign investors, a Memorandum of Understanding had been signed between the company and the Nigerian Investment Promotion Commission.
The MoU, according to him, will enable the company to showcase the huge investment opportunities in the non-oil sectors of the Nigerian economy.
He said, “We are committed to helping intra-African and foreign investors find the right partners and opportunities, joint ventures or partnerships and to establish presence through Private Public Partnership.
“There are numerous investment opportunities in Nigeria but a lot of investors particularly the foreign investors are not taking this advantage owing to the fact that they have a poor perception of the investment climate. This is understandable when you consider the fact that the operating environment is not friendly and the lack of continuity in some programmes of government.”
The Executive Secretary, Nigerian Investment Promotion Council, Ms Yewande Sadiku, said that the commission was working assiduously to promote the required synergy between investors and critical stakeholders in various sectors of the Nigerian economy.
She added that the commission would work hard to promote the ease of doing business within the area of its jurisdiction as part of its contributions to the recovery efforts.