According to a Nairametrics report from April 10, 2023, Nigerian President Muhammadu Buhari’s administration will go down in history as one of the worst in terms of luring in foreign investment. Compared to roughly $98 billion under the previous administration, the country has only been able to draw in a total of $89.4 billion under the current administration. Although it may not seem like much has changed, there is more. The current administration increased its use of debt financing, whereas the previous administration attracted more foreign portfolios and strategic investments. In other words, loans account for a larger proportion of the $89.4 billion.
The difficult business environment in Nigeria, including high budget deficits, a lack of trust, corruption, and insecurity, is to blame for the decline in foreign investment. Investors’ preference for debt-linked instruments with a semblance of a guaranteed return on their capital is understandable. Rather than the uncertainty surrounding risky business ventures. It is important to understand that human resources and capital will always gravitate towards places where they can be trusted and feel secure. Lack of trust and insecurity keeps poverty alive. The brightest minds will always gravitate towards safe and secure communities.
Proverbs 14:34 says, “Righteousness exalts a nation, but sin is a reproach to any people.” If Africans will not walk in righteousness, and establish a just society. Poverty will continue to multiply. Righteousness and justice will help to create a safe community in which trust can be built. Insecurity reduces productivity because people are afraid to carry on with business as usual. This is the source of all poverty issues in places like Nigeria. You might not be in a position to build trust and security in your country. But you can take action within your circle of influence. Light up your own world.
