Why investors desert Nigeria —Moghalu

Former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has identified weak economic policies as a factor holding investors back from coming to the country.

Moghalu, in a series of tweets on Monday, also blamed lack of foreign investments in Nigeria on outrageous taxes.

The Deputy Managing Director, Royal Foam products Nigeria Ltd, Mohammed Jibril, had last year called on the Federal Government and state governments to reduce taxation for businesses to thrive in Nigeria.

The DMD, Jibril lamented that multiple taxation by government had killed many businesses which would have boost the economy and give employment to over 50% of youths in the country.

Similarly, members of Nigeria’s Organised Private Sector (OPS) had blamed the overbearing regulatory agencies for the difficult operating environment in which businesses were being conducted.

Accordong to OPS, most entrepreneurs were groaning today over the incident of multiple taxation and decentralised revenue collection by agencies which had continued to inflate taxes amid insecurity, dearth of infrastructure and other incidental business costs.

Read also:2023: Moghalu demands efficient distribution of PVCs

Moghalu advocated low corruption and transparent policies as strategies to invite foreign investors into the country.

He wrote: “In my business as a “knowledge entrepreneur” providing advisory services to foreign investors interested in Nigeria and other African countries I find that many investors are interested in Nigeria’s potential value, but are held back by weak economic policy & business environment.

“Ease of doing business is mainly about the substance of policy + the transparency and efficiency of the marketplace. Tax issues and ports administration also matter greatly. We can do all the Ease of Doing Business work we want, but without a substantively enabling policy space as well as zero/low corruption, most potential investors will stay out, and some inside already may leave.

“Meanwhile, 2023 could open the vista for an economic boom in Nigeria depending on how things evolve. Nigeria holds much attraction to investors. It’s a great market.

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