Home News Insecurity: Nigeria should expect decline in Foreign Direct Investments- Don

Insecurity: Nigeria should expect decline in Foreign Direct Investments- Don

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Prof. Sarah Anyanwu of the Department of Economics, University of Abuja, says the rate of insecurity in Nigeria will greatly affect Foreign Direct Investments (FDIs).

She said this in an interview with newsmen on Sunday in Abuja.

According to her, every investor wants a conducive business environment for his capital and will not want to establish businesses in places where security is not guaranteed.

“Even as a Nigerian, not to talk of foreigners, you will not go and site an industry in areas where insurgency is the order of the day.

“There is kidnapping and herdsmen killing going on at the same time and foreigners keep hearing that people are being kidnapped daily and ransom has to be paid.

“So, for those that already have investments in Nigeria, that is enough to drive them out and those that are out will not be willing to come in.

“Both the rich and poor are being kidnapped, so it is a problem to even Nigerians and not foreigners alone.”

She also mentioned the porousness of Nigerian borders, adding that it was a major source of concern as foreigners who had no business being in Nigeria at all came and went at will.

Anyanwu said the nation’s borders should be strictly monitored with security tightened at all points to keep track of movement in and out to avoid people coming in anyhow to commit crime.

She, however, advised that security should be heightened with all security agencies playing their part to secure lives and properties.

The academic also said that no stone should be left unturned to promote the image of Nigeria internationally in every way and avoid situations where Nigerians in diaspora have to stage protests concerning the country.

According to Anyanwu, such scenarios send the wrong signal to prospective investors.

She also noted that electricity should be improved on as lack of it was driving the cost of doing business up.

Anyanwu also advocated good infrastructure to be provided for businesses to thrive.

A United Nations Conference on Trade and Development (UNCTAD) report released in June said FDIs into Nigeria plunged by 43 per cent in 2018 to two billion dollars.

This, the report said was due to disputes between the Federal Government and some multinationals as well as instability associated with elections which made some companies withhold planned investments.