The Nigeria Economic Summit Group (NESG) has advised the Federal Government and Nigerians to encourage local and foreign investors to stimulate economy.
Mr Asue Ighodalo, the spokesperson of NESG Board of Directors, made the call in a statement issued in Lokoja on Wednesday.
The group, in the same entitled: “Building Investors Confidence: Wong Time For Missteps,” expressed concern about situations where local and foreign investors could be discouraged to invest for the benefits of the nation.
Ighodalo explained that in recent times, Nigeria had experienced low foreign investors’ confidence.
According to him, this arises from a number of issues ranging from insecurity, foreign exchange scarcity, entrenched capital controls and an unfriendly business environment.
“But in spite of these challenges, Nigerian entrepreneurs have continued to exhibit faith in the economy by investing in the country.
“This is commendable and all hands should be on deck to ensure that the efforts of foreign and domestic investors are not frustrated.
“Investors should be encouraged to stimulate, build and and transform the economy.
“The 2023 Appropriation Bill recently submitted to the National Assembly by the president shows a huge deficit that relies on the country’s ability to attract and mobilise foreign and domestic capital,” he said.
He noted that Nigerian delegation to the ongoing annual meetings of the World Bank/International Monetary Fund would be expected to seek some support and attract the much-needed foreign investments into the country.
“Our inability as a nation to give the right signalling to investors will lead to subdued investment flows and capital flight which has a number of consequences.
“The lack of investor confidence also implies that the cost of borrowing for both the government and corporates will increase.
“Furthermore, the Nigerian government will be under pressure to service its debt and this could either constrain future budget non-debt expenditures or result in more borrowing,” he said.
He noted that investment in critical sectors would drive economic recovery and sustain the growth momentum in the medium term.
“Investments, both local and foreign, are often associated with job creation, technology, economic growth and the strive towards efficiency.
“We recognise the effort of the government towards improving the business environment, nevertheless, there is room for improvement.”
“Therefore, it is imperative for the federal and state governments to work together to ensure improved ease of doing business and good governance.
“There is no better time to build investor’s confidence than now,” he said.
