Taiwo Hassan 
Following the National Bureau of Statistics (NBS)’s report that Nigeria’s capital importation declined by 28.1 per cent, from $2.19 billion to $1.57 billion in Q1’22, the Manufacturers Association of Nigeria (MAN) has demanded that the country needs more foreign direct investment (FDIs) to create jobs and increase output in the economy. Director-General of MAN, Segun Ajayi-Kadir, in a chat with New Telegraph, frowned at a situation where the country’s FDI inflow is declining. He said Nigeria’s FDI (at a low of 9.85 per cent) was more valuable than the other investment inflows. According to him, to achieve a boost in FDIs, the Federal Government must tackle the worsening insecurity in many parts of the country and implement investment-friendly policies to create an enabling investment and regulatory environment for investors.
The MAN Director-General pointed out the NBS report on the country’s declining capital importation was a concern for the country and labelling the fault on worsening insecurity. He recalled the NBS’s capital importation report for the first quarter of 2022, saying it showed that Nigeria attracted a total of $1.57 billion in capital inflows in Q1’22, falling by 28.1 per cent compared to $2.19 billion recorded in the previous quarter. Compared to the corresponding period of 2021, Nigeria’s capital importation declined by 17.46 per cent from the $1.91 billion received in Q1’21.
The industrialist explained that the largest amount of capital importation by type was received through Portfolio Investment, which accounted for 60.87 per cent ($957.58 million). This was followed by Other Investment with 29.28 per cent ($460.59 million) and Foreign Direct Investment (FDI) accounted for 9.85 per cent ($154.97 million) of total capital imported in Q1’22.
He said: “The concern here is that FDIs (at a low of 9.85 percent) are more valuable than the other types of investment inflows. “We need more FDIs to create jobs and increase output in the economy. “To achieve this, we must tackle the worsening insecurity in many parts of the country and implement investment-friendly policies to create an enabling investment and regulatory environment.” Ajayi-Kadir noted that the war between Russia and Ukraine had unexpectedly impacted negatively on FDIs inflow, saying that this was not good for an economy like Nigeria that has no shock absorber. He emphasised that FDI inflow inducement into the country’s economy would fuel deeper fears, especially in the areas of worsening food scarcity, more people falling into poverty, and that of supply chain disruptions. Meanwhile, the Managing Director of Coleman Wires and Cables, Mr. George Onafowokan, has emphasised the need for the country to focus more on Domestic Direct Investment (DDI) than on Foreign Direct Investment (FDI) for the sustainability of local content to boost Nigeria’s revenue generation drive post COVID-19.
The Coleman CEO said there was a need for Nigerians to see the growth of the country based on themselves before anybody else. According to him, “we need to be more deliberate as Nigerians and need to see the growth of this country based on ourselves before anybody else. We always say FDI and we seem to forget domestic direct investment. “It is good we have FDI, but how many of them are thinking of the second generation? I think it is very hard to find. When you are talking about DDI in local content this talking about their children and their sustainability.
