It’s Difficult Making Investments In Nigeria- Peterside
The Chairman, Anap Business Jets Limited, Atedo Peterside, has said that it is difficult making investment in Nigeria due to favouritism in government’s attitude to investors.
He also accused the Nigerian government of giving few highly politically connected businessmen free access to cheaper forex.
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Peterside made the claim on Saturday in a tweet seen by THE WHISTLER.
Peterside tweeted, “We need to level the playing field in Nigeria. Our economy is rigged in favour of politically-connected businessmen and so only a handful thrive where thousands or millions should be thriving.”
Nigeria has suffered a huge decline in capital importation into the country.
Nigeria’s capital importation for 2020 tumbled 59.65 per cent in 2020 to $9.7bn due to the impact of the Covid- 19 pandemic.
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This is against the $23.99bn recorded by the end of 2019, the National Bureau of Statistics said.
During the first three quarters of 2020, capital importation for Q3, stood at $1.46bn and $1.29bn in Q2 of 2020. In the first quarter of 2020, the amount was $5.85bn, the highest recorded in the review year.
During the fourth quarter of 2020, capital importation into Nigeria stood at $1.06bn.
Apart from the Covid-19, investors fear bringing in their funds after some foreigners were trapped in the economy due to dollar scarcity.
A foreign exchange backlog of over $2bn was recorded in 2020, the official rate was adjusted to N379 per dollar, while the Investors’ & Exporter Window was around NN386 to N400.
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Prior to the post, Peterside had told the European Union Delegation to Nigeria and the Economic Community of West African States (ECOWAS), headed by Ambassador Ketil Karlsen that the country’s economy has been staged to favour few individuals.
He said, “It is becoming increasingly difficult and impossible to justify making a major investment in Nigeria as the investor is forced to compete with a few persons whose cost profile is lower on account of their privileged access to cheaper forex.”
Last year Dangote Cement received the approval to export Cement to West Africa through Nigeria’s land borders.
The controversial permission was given despite a directive by the government in 2019 to close all land borders due to smuggling activities and for security checks. During the period, a ban on both legal and illegal exports were in place.
Apart from Aliko Dangote’s company, BUA Cement founded by Abdusalmad Rabiu was also given the same privilege to export outside the closed borders.
Both men are from Kano State in the Northern region of the country.
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In February this year, BUA and Dangote were in a serious war with BUA accusing Dangote Cement.
BUA Group’s Chairman described Nigeria’s cement policy as ‘favouring the big players’ which had led to a hike in cement prices.
But Dangote Group’s Executive Director, Project and Portfolio Management, Edwin Devakumar, denied the claim.
Dangote Group also was exempted from paying certain statutory charges at the Onne Ports, River State.
