US: Nigeria lacks macroeconomic framework to attract dollar denominated foreign investment

US: Nigeria lacks macroeconomic framework to attract dollar-denominated foreign investment....KINDLY READ THE FULL STORY HERE▶

Wally Adeyemo, the US Deputy Secretary of Treasury, has pointed out that Nigeria currently lacks the essential macroeconomic framework required to bring in significant dollar-based foreign direct investments (FDIs). Speaking at the Lagos Business School during a forum with business leaders, Adeyemo emphasized the need for Nigeria to establish an economic framework that underscores its commitment to core economic principles. Such a move, he believes, would be pivotal in attracting foreign investors, bolstering the nation’s economy.

While acknowledging the government’s initial fiscal policy steps and the move to unify the exchange rate, Adeyemo maintained that more reforms are crucial. He highlighted the need for a comfortable business environment to make Nigeria a prime destination for FDIs.

Adeyemo cautioned that the reforms proposed by the Nigerian government might not yield immediate results, given the economic hardships faced recently due to factors like the COVID pandemic, the Russia-Ukraine conflict, and fluctuating exchange rate policies. He emphasized the importance of well-structured reforms that ensure the security of foreign capital and its free movement in and out of the country.

Expressing optimism, the Deputy Secretary mentioned that the US is optimistic about Nigeria, primarily because of its populace. He acknowledged that the recent reforms in Nigeria had been long awaited. Adeyemo affirmed the US’s intent to collaborate with Nigeria in realizing these reforms, a sentiment shared by global institutions like the World Bank and the African Development Bank (AFDB).

Adeyemo concluded by mentioning that the US remains one of Nigeria’s most significant foreign investors. He emphasized the profound trade relationship between both countries and mentioned the US’s support in 2022, providing over $1 billion to help Nigerians access healthcare and tackle food insecurity.

Source: Bushradiogist