Nigeria’s Economic Future: Indigenous Companies Have Higher Risk Appetite, Says Governor Chukwuma Soludo
In a bid to boost the Nigerian economy, the state governor, Chukwuma Soludo, has emphasized the importance of nurturing local companies, stating that indigenous Nigerian businesses have a higher risk appetite than foreign investors and multinationals. Speaking at the Abuja Business and Investment Summit, Soludo noted that foreign companies are "opportunistic" and tend to jump from one country to another as soon as they sense difficulties.
Soludo stressed that the government must learn to "derisk" certain strategic investments for the private sector, as indigenous Nigerians have a higher risk appetite to invest in their country. He urged the government to intentionally nurture national champions for sustainability, highlighting the importance of building domestic capital.
The Anambra state governor also expressed hope that stabilizing the foreign exchange rate and monetary policy will loosen, enabling business owners to borrow at reasonable rates and gain a real return on investments. He emphasized the significance of the oil and gas sector, which he believes will remain critical in the short to medium term.
Soludo’s remarks come as Nigeria faces an economic crisis, triggered by the government’s twin policies of petrol subsidy removal and unification of forex windows. In the past year, some prominent manufacturing companies, including Kimberly-Clark, Procter & Gamble, and GlaxoSmithKline, have pulled out of the country due to high energy costs and currency depreciation.
In his speech, President Bola Tinubu professed his administration’s commitment to free enterprise, free entry, and free exit in investments, while maintaining the sanctity and efficacy of Nigeria’s regulatory processes. As the country navigates this challenging period, Soludo’s words of wisdom serve as a crucial reminder of the importance of nurturing local businesses and fostering sustainable economic growth.
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