Taiwo Hassan 
Following the current frosty relationship between the United States and Nigeria, members of the Organised Private Sector (OPS) have declared that American investment interests in Nigeria have waned as Nigeria is no longer a viable investment partner to the US.
The private sector group comprising Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Manufacturers Association of Nigeria (MAN), Lagos Chamber of Commerce and Industry (LCCI), Nigeria Employers Consultative Association (NECA), Centre for the Promotion of Private Enterprise (CPPE) and others, lamented that the actions taken so far by President Donald Trump’s administration on Nigeria show that the US has deliberately neglected a cordial bilateral relationship with Nigeria.
While speaking on behalf of the Organised Private Sector (OPS), the Director and Chief Executive Officer of CPPE, Dr Muda Yusuf, who is a key member of the OPS, stated in an interview with New Telegraph in Lagos, that the current administration in the US is not reckoning with Nigeria as a viable and important business partner.
On the retaliatory tariffs, he said: “This is not peculiar to Nigeria alone, it’s general. And this has to do with the relationship between the US and many countries is no longer the same. There is increasing tendency of the current US government to exclude other countries either from coming to the US or doing business with the US and all of that.
“So what the Trump administration is doing is not auguring well at all for investment and trade relations, even for diplomatic relations. “I mean take the case of Nigeria, he has cut our visa to three months single entry. If you want to do business, how can you do business with that kind of visa, it can’t work.
Every three months you go and queue up at the US Embassy in Nigeria. “So it’s not helping the bilateral relationship because it’s as if he is no longer interested in doing business or developing good working relationship with Nigeria and some countries.
“So he’s not keen whether business, trade or investment relationship, because his attitude and the disposition of the US to us have not been friendly at all. I think it’s high time we began to look for other partners as far as international trade is concerned.”
On whether US is still an investment place for Nigerians, the CPPE CEO affirmed: “No! We need to review our reliance significantly either as a corporate organisation or individuals.”
While highlighting risks and economic implications of US military’s action, the renowned economist stated that investor confidence and perception would be eroded. “Even the mere threat of military action by a global superpower has inflicted significant reputational damage on Nigeria’s image as a safe and viable investment destination.
“Such rhetoric can trigger decline in foreign direct investment (FDI) inflows. Capital flight from portfolio and equity investors, a decline in venture capital and startup funding “Market volatility would likely intensify as investors reassess Nigeria’s risk profile.
Likely consequences include: Falling stock market valuations. Rising country risk premiums and insurance costs. Higher sovereign bond yields “Naira depreciation due to capital outflows and portfolio reversals.
Macroeconomic Stability Risks: An escalation in perceived geopolitical risk could tighten financial conditions and distort macroeconomic indicators. Nigeria may experience: Rising interest rates. Weakened currency and higher inflationary pressures.
“Reduced foreign reserves and lower external buffers. Pressure on fiscal balances from increased defense spending and lower investment inflows.
Investment and Business Sentiment: Uncertainty and fear would lead investors to adopt a waitand-see posture, delaying or cancelling major projects. Private equity and venture funds may diversify away from Nigeria toward peer economies in Africa or Asia with lower perceived political risk,” he added.
