NACCIMA president calls for investment agencies’ overhaul

The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Kelvin Oye, has called for a comprehensive strengthening of Nigeria’s Investment Promotion Agencies (IPAs) to attract quality investments into key sectors of the economy.

Oye, who is also the Chairman of the Organized Private Sector of Nigeria (OPSN), emphasized the urgent need to enhance institutional capacity and promote collaboration among federal and state IPAs to unlock Nigeria’s vast economic potential.

He spoke at the Nigerian Investment Promotion Commission Summit, held in Benin City, Edo State.

According to him, “We are gathered to deliberate on how Investment Promotion Agencies (IPAs) can enhance their institutional capacities and facilitate collaborations that will ultimately attract impactful investments into Nigeria’s vital sectors.

“Nigeria’s investment landscape presents a complex interplay of both opportunities and challenges. As the largest economy in Africa, endowed with a burgeoning population and an expanding middle class, Nigeria holds immense potential for investors. However, persistent hurdles continue to impede progress.

“Government can implement public-private partnerships to deliver utility infrastructure and ICT investment in these sectors. Examples are investment in agribusiness processing, private transport infrastructure storage, distribution, and export. Targeting sectors which create employment for youth using education and skills acquisition programs is easier than building factories or awarding government contracts.

“More youth will be gainfully employed if investment promotion agencies add Human resources and Skills development as investment opportunities. Areas like ICT, Tourism, Hospitality, Entertainment, Music, Heritage legacy, fashion, Food, the green economy, nature and environment remain underexploited.”

Oye continued: “The security industry is currently dominated by the public sector. Government can consider private sector innovation and investment in specific areas where local technologies and industries can be strategic to Nigeria. Post-analysis of COVID-19 pandemic demonstrated why Nigeria needs indigenous technologies and capacity to survive unexpected shocks.

“IPAs should also embrace investment opportunities arising from the ‘Japa Syndrome.’ Nigeria cannot influence world events but we can influence how we respond to these events.

IPAs can promote investment in medical and health skills training facilities which will train the next generation of professions. The current academic approach is suboptimal.

“We need an industry-led approach to support our current academic endeavours. The consequence and outcome of an industrial approach will lead to manufacturing and industrialisation opportunities in pharmaceuticals, medical tools and equipment, consumer goods and capital goods. Our students should be graduating as employers and industrialists instead of looking for jobs.”

On Nigeria’s economic opportunities, the NACCIMA boss stated, “With over 230 million people, Nigeria offers a vast consumer base driven by an increasingly affluent middle class. The question is: why are we not getting more high-impact investments into specific critical sectors in Nigeria?

“Our population is growing but per capita income is dropping. We can see this as a problem or an opportunity to disrupt existing market realities through government deregulation and innovative development policy, which amplifies market and technology opportunities for sectors like healthcare and education. Like China, Nigeria can potentially transform its growing number of impoverished citizens—through private sector-led entrepreneurship programs and skills development training programs for specific sectors.

“These measures are cheaper, faster and target Human resource capacity which will produce a better impact in the long run as newly trained individuals become self-employed and create jobs. This focus is better than the current cash transfers, which apart from too little, create a culture of dependency, without any viable positive impact, in the short and long term.

“Nigeria’s economic diversification is actively underway, moving beyond the oil sector. Key areas ripe for investment include: Infrastructure: The government is committed to substantial infrastructural development, presenting opportunities in transportation, including roads, railways, and ports.

“Agribusiness: Agriculture remains a cornerstone of the economy, with ample potential in processing, storage, distribution, and export.

“Information and Communications Technology (ICT): Driven by innovation and a tech-savvy youth demographic, the technology sector is positioned for growth.

“Tourism and Hospitality: With rich cultural diversity, Nigeria’s tourism sector is underutilized. By aligning policies with industry insights, we can yield significant employment opportunities and directly address challenges such as youth migration, unemployment and insecurity.

“Solid Minerals: Recent progress in the solid minerals sector has led to revenue increases and substantial foreign interest. With strategic oversight, Nigeria can harness its mineral wealth for national development.”

He further noted, “The Nigerian government has proactively created an investment-friendly environment through initiatives like the Nigerian Investment Promotion Commission (NIPC) and various state-level investment agencies. The government through NIPC and other agencies offers tax incentives, immigration reforms, port reforms, etc., thereby promoting ease of doing business.

“While these incentives and streamlined business processes have made strides in attracting foreign direct investments, agencies such as SON, NAFDAC, and FCCPC must align their operations with these objectives towards supporting the private sector effectively.”

According to him, “A collaborative, multi-tiered approach is essential. By launching state-level investment promotion units and encouraging synergies between federal and state IPAs, we can enhance local insights and strategically attract investments tailored to regional strengths.

“My appeal is that the NIPC and at the States’ IPAs level, should collaborate with the various agencies to develop a real-time online Dashboard of various approvals and applications in order to give visibility to other agencies.  This simple but crucial step will help at the National and state level, reduce the entanglement of multiple agencies at various levels of government

“Addressing ethical concerns in sectors like cocoa cultivates an environment of accountability and integrity, essential for attracting investments. The NIPC must lead efforts promoting best practices and cooperation between the government and private sector.

“Public investment agencies can forge innovative partnerships to promote public good while minimizing governmental backlash. Strategies may include a.) healthcare initiatives, establishing b.) innovation hubs for entrepreneurship, and addressing societal challenges through c.) public-private partnerships. Collaborating with research firms for d.) data-driven policy and e.) sustainability initiatives will also reinforce growth.

“If the above objectives are achieved through a collaborative effort with the OPSN, the NIPC and OPSN would have created a steady foundation to build up confidence in Nigeria’s investment landscape. The OPSN will be ready to commit resources to help the government achieve its investment mandate and economic diversification objectives.’

He added, “In closing, I implore us to reimagine our Investment Promotion Agencies as catalysts for sustainable economic growth, community upliftment, and innovative solutions. The principles of collaboration, technological adaptation, and unwavering commitment to investment environment improvements are universally applicable.

“While Nigeria and Africa face challenges, many solutions stem from our collective actions. Together, we can shape Nigeria into a beacon of quality investments across the continent. Let us unite to strengthen our institutions, develop resilient ecosystems, and tear down barriers to create a welcoming and prosperous investment landscape.”

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