President Bola Tinubu and Vice President Kashim Shettima have been actively engaged in international diplomacy, embarking on numerous trips to various countries. These visits have resulted in mixed outcomes in terms of attracting foreign investments to Nigeria.
Tinubu’s extensive travels have taken him to several countries, including Equatorial Guinea, the United Kingdom, Guinea-Bissau, and many more. Despite these efforts, some of the destinations did not yield any significant capital inflows for Nigeria. Similarly, Shettima’s visits to countries like Russia, China, and Ivory Coast did not result in substantial investment returns for the nation.
On the other hand, some countries visited by the leaders did contribute significantly to Nigeria’s investment inflows. The United Kingdom emerged as a top contributor, with a substantial increase in investments recorded. Shettima’s visit to China notably saw a positive impact, with increased capital inflow compared to the previous year.
While some countries like South Africa and the United States saw varying levels of investment contributions from both leaders, others like the Netherlands, Saudi Arabia, and Germany also showed improvements in capital inflows during the specified period.
Additionally, data revealed significant expenses incurred by the State House on obtaining visas for officials, indicating the high costs associated with international engagements. Despite the efforts made by the leaders, the decline in Foreign Direct Investment into Nigeria underscores the challenges the country faces in attracting long-term investments amidst economic uncertainties.
Experts have attributed the drop in FDI to factors such as naira devaluation and an unstable foreign exchange market. The preference for foreign currency loans over equity investments suggests investor caution and a tendency towards safer financial instruments rather than long-term commitments.
While foreign currency loans can provide immediate liquidity, they may not offer the same stability and growth potential as direct investments in physical assets or infrastructure. This trend highlights the need for Nigeria to address underlying issues impacting investor confidence and create an environment conducive to sustainable economic growth.