Nigeria’s goal of being the most attractive destination of investment by 2020 may be proving elusive. Empirical evidence shows that Nigeria, with 180mn people representing 2.37% of world population, only attracted 0.18% of inward foreign direct investment in the world. This is a suboptimal performance in portfolio and strategic investment indicators.
Therefore to accomplish this lofty goal, Nigeria must attract at least 2% of global FDI flows or $40bn by 2020.
The Buhari administration in the ERGP is looking to increase its diaspora flows above its current level of $21bn. Nigerians are now the 6th largest remitters of funds back to their country.
The advantage of the improved flow of capital into the Nigerian economy is its capacity to bridge the infrastructure gap, now estimated at $300bn. The flows will not only increase GDP in terms of activity, but will serve as a catalyst and investment multiplier to other sectors of the economy and boost output.
In this edition of the FDC Bimonthly publication, the FDC Think-Tank analyzes these issues and their implications on businesses and investment decisions.
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