How delay in passage of 2017 budget cost Nigeria $640.6m in foreign investments

More facts have emerged on how late passage of the 2017 Budget Bill led Nigeria into losing about $640.61 million decline in foreign capital inflow in the first quarter of the year as against projected $1.46 billion

The country also suffered some decline in foreign investment in the same period in 2016, but that was not to be compared with 2017 because, the previous year, 2015, did not have a backlog of recession, according to available data.

But the real sector has come up with the conclusion that, if nothing is done to stop the new trend of delay in submitting on time to the National Assembly each year’s projected annual expenditure plans, the country would continue to have negative impact on the economy, generally.

It could be recalled that the National Bureau of Statistics (NBS) had in its May 2017, released a report stating that the total value of capital imported into Nigeria in the first quarter of 2017 was estimated to be $908.27 million, the lowest in ten years.

According to the report, tagged ‘Capital Importation,’ the economy attracted about $1.55 billion in the fourth quarter of 2016, the figure was still a decline by 41.4 per cent, as investment inflow started showing heavy downfall in the past 10 years.

But the President of the Manufacturing Association of Nigeria, (MAN), Dr Francis Jacobs, addressing the Medium and Small Scale Enterprises Workshop in Lagos on Monday, said the reason Nigerian economic woes has continued to worsen in the first quarter of 2017, contrary to projections, was the unnecessary policticking that had affected both the passage and signing of 2017 budget into law.

The MAN President, represented at the event by the Deputy Director, Research, Mr. Gilbert Odeh, said, “There were a number of foreign investors waiting on government to come out with its policy thrust on the economy, as should be expected from the budget, but till date, the country has no budget.

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“If local investors and other players in the economy cannot move an inch further without the budget, how will you expect foreign investors to come in?

“The solution to Nigerian economic crisis will defintetly begin as soon as all stakeholders in the sysyem begin to appreciate what the country stands to gain by paying attention to early budget passage and other healthy economjc policies.

“Nigeria has the highest investment potential, compared to any African country, as there is hardly any sector that has been saturated in it. But all that is needed is a foresighted policy making process”

Other speakers were of the opinion that to encourage foreign capital inflow into the country, policy makers should device a better means of constantly engaging both local and foreign investors, through interactive programmes.

The chairman of First Aluminium Nigerian Limited, Mr. Wilfred Asutoyen, said one of the ways of attracting investors is to have the front desks of all Nigerian foreign service dedicated to information dissemination that will be targeting idle funds in the countries of their posting.

“How else do private sector practitioners get investors, who picks interests in their industries other than using every available space in any forum to canvass for investors to pick intetest in their companies. I believe government can also improve on this approach and have more foreign capital inflow into the country,” he stated.

 

 

 

 

 

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