Kingsley Moghalu, a former Deputy Governor of the Central Bank of Nigeria (CBN), has cautioned that relying solely on political speeches will not be sufficient to halt the mass departure of multinational corporations from the country.
In a tweet on Friday, Moghalu, highlighted that Nigeria has a significant journey ahead in rebuilding the confidence of both international and local investors. He emphasized that mere political speeches would not be enough to address the ongoing exodus of multinational corporations.
Expressing concern over the departure of international brands, Moghalu lamented the worrisome situation. He suggested that the trend could be reversed if national and state authorities paid heed to expert advice.
Moghalu argued that having the largest population of poor people is insufficient, emphasizing the necessity to enhance the production capacity of the country.
His statement reads, “Nigeria has a long way to go to attract investor confidence – int’l and local. The exit of respected global brands is worrying. When I am in Egypt or South Africa, I see a very big difference in investor perceptions & attitudes – despite the internal challenges in those countries. This situation can be reversed if our national & state authorities (a foreign diplomat told me some states are actually now seen as better partners by investors than the federal government) will listen to expert advice & take the necessary steps, mainly in governance/rule of law.
“At a second level you have the macroeconomic environment which is very weak. Then you have the matter of infrastructure and skills. The challenge must be dealt with at these three levels. Speeches to foreign investors in foreign capitals by political leaders cannot yield results without these fundamentals being fixed, and in fact are unnecessary if the business environment is basically attractive. Capital scans the world, on its own, looking for profit. On what basis are we, really, the “giant” of Africa? Having the largest population (most of whom are poor and getting poorer) is not enough. It’s the PRODUCTIVITY of any economy that matters, and that depends on the three factors I mentioned above.”
