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  • BREAKING NEWS: Why foreign investment inflow may continue to be a mirage in Nigeria- Muda Yusuf
  • Nigeria’s quest to attract foreign investment
    inflow may continue to be a mirage unless
    contractual obligations and agreements are
    respected by the government, Muda Yusuf,
    Director-General, Lagos Chamber of Commerce
    and Industries, LCCI said.
    Speaking at the Vanguard Economic Discourse,
    held in Lagos last weekend, Yusuf said that the
    history of compliance to contractual agreement
    especially from government, is not a good story
    and infractions incurred by the government
    discourage investors.
    “I will like to stress the importance of respect
    for contractual obligations or agreements. This
    economy needs a lot of private capital, either
    foreign or domestic, especially in the
    infrastructure space. The history of compliance
    to contractual agreement especially from
    government is not a good story. We have had
    issues. How successful is the PPP (public-
    private partnership) arrangement in the
    country?
    “We had the concession on Lekki – Epe road,
    which did not work as expected. We had the
    Lagos – Ibadan expressway concession. We
    had the MM2. There were issues in all, even
    the NLNG. Only recently the NLNG Act was
    amended and some clauses were inserted,
    which were not there initially.
    ‘‘All these things have a way of discouraging
    flow of foreign investments. We need to build
    some confidence in that regard so as to
    augment whatever government has in terms of
    finance,” he said.
    Speaking further, Yusuf said ‘‘We also need to
    worry about our institutions. Institutions are
    very critical for the quality of policies that are
    formulated. They are very critical for the quality
    of implementation.
    Yusuf also expressed concern over what he
    sees as failure in the financial intermediation in
    the banking system in the country.
    He stated: ‘‘The essence of banking is to
    ensure the mobilisation of resources from the
    surplus end of the economy to the deficit end of
    the economy. But what you find in the Nigerian
    economy is that there is so much deficit in
    terms of funding the SMEs, the manufacturing
    space, the property market, the infrastructure
    space etc.
    ‘‘At the end, it is so difficult to get the surplus
    fund from the banking system to flow to that
    space. That is the major challenge that we
    need to fix so that we can get the banking
    sector to be more supportive of the economy.

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