News
Collapse of Foreign Investment As Nigeria’s Next Envisaged Crisis
By Joel Popoola
Nigeria’s population is exploding while its economy is shrinking. Which is why financial figures released this week make such scary reading.
Forecasts from the International Monetary Fund predict economic growth in Nigeria to be just a third of the global figure for 2021.
And statistics from the National Bureau of Statistics showed a 61% year-on-year decline in foreign money flowing in Nigeria.
This means fewer and fewer international customers for Nigerian businesses, and crucially, fewer and fewer investment capital for Nigerian companies.
International businesses and investors spent $2.8bn in Nigeria in the first half of 2021. In the first half of 2020 this figure was $7.2bn.
Of these figures, foreign direct investment – overseas companies setting up in Nigeria – fell 36% year on year.
The World Bank has also estimated that foreign investment in Nigeria is down 80% in recent times. Foreign portfolio investments – the purchase of Nigerian securities or other assets fell from $4.7bn to $1.5bn in a single year – a drop of nearly 70%.
The impact of the COVID-19 pandemic would have of course played a part, with many businesses across the globe practically mothballed for months.
But there is long-term systemic reason for the collapse of foreign investment in our nation. Nigeria does not appear to be a safe investment.
But we should be an unbeatable one.
In population terms alone, we offer overseas organisations one of the largest domestic markets on earth.
Then, there is our vast human capital.
We have ambition: Our young people are the most likely in all of Africa to have considered running for elected office.
We are entrepreneurial: 71% of our young people have an idea for a business.
We are innovative, having been described as “Africa’s most attractive tech hub for investors” and home to the most start-ups in Africa.
Just last year, consultants McKinsey reported that Nigeria’s Fintech sector has raised more than $600 million in funding between 2014 and 2019.
But if that funding dries up, how are the companies of tomorrow supposed to take their businesses to the next level, growing their international sales, workforces and – yes government – tax bills, which in turn will pay for better public health, education and infrastructure.
This investment is the lifeblood our future economy. But investors are increasingly looking elsewhere.
For a reason why there are doing that, we need look only to the recent research from pressure group YIAGA, who have suggested an astonishing $582bn has been lost to corruption in our nation since independence.
Investors will not see a return on their investment when it is quite clear how much of it is likely to end up in the back pockets of the duplicitous, the dodgy and the dishonest.
We need to build international trust in Nigeria. And that battle begins at home.
At the digital democracy campaign I lead we are looking to rebuild the relationship between government and governed using the power of social media.
We have created a free smartphone app called Rate Your Leader to bring elected officials closer to the people who elect them.
Rate Your Leader which connects verified political figures with verified voters in the divisions they serve, giving local people the kind of direct personal access only previous granted to the privileged few like lobbyists and party donors.
If you want to raise something with your local leader, you can. If you want to ask them a question, you can. If you want to put forward an idea to make your community better, you can.
Apps like Rate Your Leader show how transparent, responsive and accessible political leaders can be, which builds wider trust in our political class and political system. Rate Your Leader also lets users rate local elected officials for openness and responsiveness, rewarding our most transparent and accessible politicians and highlighting their qualities to other voters.
The app also gives politicians a real-time insight into what matters most to the people who elect them – allowing them to take action, make changes and win the respect, trust and affection of the people their serve.
We are a nation held back by the notion that everyone else is only out for themselves – from the very top of the country down. This isn’t true.
But the idea is spreading to other nations too. And that is something that our economy simply cannot afford.
Joel Popoola is a Nigerian tech entrepreneur and digital democracy campaigner. He is also the creator of the Rate Your Leader app.
Impeached Speaker of the Lagos State House of Assembly, Mudashiru Obasa, has described the corruption allegations against him as “fictitious and unsubstantiated”.
Speaking during a welcome rally at his residence in GRA, Ikeja on Saturday, Obasa maintained that he was not afraid of being impeached but emphasised that due process was not followed.
The former Speaker alleged that his removal was orchestrated while he was away, and accused the state commissioner of police of aiding the process.
He claimed security agents, led by the police commissioner, invaded the assembly complex and his homes in Agege and Ikeja, locking his family indoors with over 200 officers present.
Obasa dismissed allegations of misappropriation.
He mocked claims that a gate construction had cost N16 billion, saying, “Is it the wall of Jericho?”
He said: “I am not afraid of being removed, after all, it is not my father’s chieftaincy title. I am representing my people and they have returned me six times. If you want to do anything, do it well.
“They did the removal all because I was out of the country. Lagos is a special place, we cannot denigrate the state.
The former Speaker cited the case of the former speaker, Rt. Hon Jokotola Pelumi.
He said when Pelumi was removed, he was in the assembly and “we did not invite policemen.
“When my sister, former deputy speaker of the House, Hon. Adefunmilayo Tejuosho was removed, we did not invite the police.”
Obasa said an innocent person should not be discredited, and there must be proof of allegations showing exactly what he has done.
“The Lagos State House of Assembly is above common standard of excellence.
“I appreciate the members of the governance advisory council and Governor Babajide Olusola Aanwo-Olu of the state. He is my brother and he always calls me his younger brother.”
Obasa was impeached on January 13 by more than two-thirds of the 40-member legislative house over alleged misconduct and sundry offences.
His Deputy, Mojisola Meranda, was immediately elected the new speaker, becoming the first female to take charge of the legislative body in the State.
The Federal Airports Authority of Nigeria (FAAN) has confirmed that 38 persons, including seven crew members, were injured when a United Airlines plane made an emergency landing in Lagos on Friday morning.
The Boeing 787-8 flight with 245 passengers was en route to Washington Dulles International Airport (IAD), in the United States, from the Murtala Mohammed International Airport, Lagos, when it developed problems midair and was forced to return to the airport.
There were also 11 crew members – eight attendants and three pilots – on the plane.
The FAAN Director of Public Affairs and Consumer Protection, Obiageli Orah, who confirmed the incident through a statement, said all passengers and crew disembarked safely.
She, however, said four passengers and two crew members sustained serious injuries.
According to her, 27 passengers and five crew members had minor injuries.
The statement read: “The United Airlines Boeing 787-800 departed Murtala Muhammed International Airport (MMIA), Ikeja, at 11:59pm on Thursday, but made air return and landed safely at 3.22am on Friday.
“On board were 245 adults and 11 crew members.
“The team of Aerodrome Rescue and Fire Fighting Services, Aviation Medical, and Aviation Security were already at the gate when the aeroplane parked for deboarding at D31 without incident, and the door was opened at 3:37am.
“While all passengers and crew disembarked safely, four passengers and two crew members sustained serious injuries, and an additional 27 passengers and five crew members had minor injuries.
“The rescue team responded swiftly and effectively, having been on alert and standby.
“Aviation medical ambulances transported the injured passengers, some to the MMA Clinic and others to the headquarters clinic.”
By Henry Ukazu
Dear Destiny Friends,
There’s no doubt that human beings by nature are insatiable. When we get one opportunity, we always look for another. When we attain one height, we always look for another accomplishment. Isn’t it true that the end of one mountain is the beginning of another.
However, I don’t think it’s selfish for anyone to dare to succeed.
Being ambitious doesn’t make one an opportunist or disloyal. It all depends on one’s perception or outlook to life. It’s just natural for one to dream big. It’s only ugly when the process one chooses to achieve his desires becomes dirty and nasty.
According to a former Nigerian presidential candidate and seasoned Economist, Mr. Peter Obi, “if you must be referred to as “Your Excellency”, then the process through which you arrived in office must be excellent”.
If you desire to be reckoned with on the journey of existence, you must be legitimately hungry for success. One’s hunger for success will facilitate the drive to accomplish great tasks despite daunting obstacles posing as challenges.
When one has this mindset, one will not be bothered by the noise which serves as obstacles and challenges along the way. Negative and weak minds are always concerned on why something won’t work. They tend to focus their energy and reasons on the obstacles facing them. But great and productive minds always focus their energy on the reasons why it will work. This is the spirit of an insatiable mind who is a goal- getter.
It’s instructive to note that we can’t please everyone. According to Bill Cosby, a famous actor, “I don’t know the key to success, but the key to failure is trying to please everyone.” Isn’t it true that when you talk, people will still talk about you, when you don’t talk, people will talk about you, so whether you talk or not, people will still judge you, so, do what’s best for you. There’s nothing you can do to please human beings. Your best option is to live your best life.
To understand how the insatiable nature of man works, one must be oneself. You don’t have to “please” anyone. Be yourself, and don’t try to be like anyone just to curry favour. It’s important to note that when you are yourself, the people that matter will come through for you, and the people that don’t matter will gradually find the bearing in another space because those that truly care don’t bother and those that bother don’t really matter in the grand scheme of things.
Life has truly taught me to focus on the important things of life as opposed to the mundane things. It’s truly sad to see people spending more time on the little things of life, and spending little time on the important things of life. That’s just a misplaced priority.
When you are yourself, the best people can do is to copy or imitate your style. They can never imitate your creativity nor can take your originality from you.
We live in a world or society where people don’t generally care or show empathy. Most people tend to live around themselves, their family, and close associates. They generally find it hard to lift a finger to assist others for reasons best known to them. Rev. Fr. Ejike Mbaka once said, “we live in a wicked generation”, re-echoing the voices of a lot of people of the world. Some people in authority just have criminal expertise in amassing wealth of opportunities meant for the citizens without thinking of the citizens they are meant to serve.
It’s worthy of note that not everyone will like you nor support your work, but when you find people who truly care about you; please hold them tight. This is because despite having family members you have shown love and compassion, they might not still appreciate you even if you lay your life for them, they will still find something to say. Again, this is the insatiable nature of man.
It’s okay for everyone not to like you, normalize living your life for God, yourself, family and those that care about you. If everyone likes you, you have a problem.
Did you know that you can get a new family from friends, strangers, and acquaintances? These sets of people might appreciate you more than your own family members. They might not demand or under appreciate you like your family members and close friends or associates. Any little support you give them will be highly appreciated. Their focus is to see you do better.
In conclusion, as you desire to succeed in life, never give in to failure until you have made your last attempt, and never make your last attempt until you succeed. This literally means whatever you desire, dream it, think it, say it, and believe you can achieve it. This principle is generally applicable to relationships, businesses, family, personal and professional development.
Henry Ukazu writes from New York. He works with the New York City Department of Correction as the Legal Coordinator. He’s the founder of Gloemi. He’s a Transformative Human Capacity and Mindset coach. He is also a public speaker, youth advocate, creative writer and author of Design Your Destiny Design Your and Unleash Your Destiny . He can be reached via info@gloemi.com
