Tinubu intensifies economic growth diplomacy

  • Assures investors safety of their money in Nigeria
  • Federation account receives N1trn in four months, says FG
  • Equities market retreats as investors offload N57.3bn


President Bola Tinubu, on Monday, told international investors from G20 nations that their monies are safe in Nigeria’s business environment.

He reasoned that beyond Nigeria’s natural resources, the people of Nigeria, whom he described as highly educated, highly skilled and naturally industrious, are the primary asset and advantage the country wields over other nations in the global race for new investments.

“Your money is safe…We are eager and ready to partner with you…We have the youngest, largest, and most vibrant youth population in Africa…equally, we have a well-educated population, a massive market, and the political will to bring it all together under my leadership,” Tinubu said at a panel discussion hosted by German Chancellor, Olaf Scholz, in Berlin.

The Special Adviser to the President on Media and Publicity, Ajuri Ngelale, conveyed this in a statement he signed on Monday.

Tinubu said since he assumed office in May 2023, his administration has embarked on transformative changes, removing all obstacles hindering businesses.

“We are reforming the economy based on the principle and philosophy of good governance,” the President affirmed.

He noted that while promoting the rule of law is crucial for attracting foreign investments, Nigeria’s energetic youth population and well-educated populace represent the most significant incentive for investors toward the mutually beneficial replication of China’s economic resurgence.

“We are eager and ready to partner with you. We have the youngest, largest, and most vibrant youth population in Africa.

“Equally, we have every ingredient required in making a modern economy: a well-educated population, a massive market, and the political will to bring it all together under my leadership,” he said.

Tinubu argued that Africa has moved beyond the false past notions of business disincentivization and poor adherence to the rule of law it was known for.

Instead, “We now fully recognize the nexus between the inflow of investor money and the sanctity of contracts.

“We want to partner on the basis of who we are and what we do, rather than on the basis of long-held misconception,” the President stated.

He affirmed that the Federal Government is now dogged in its pursuit of natural gas development today, in tandem with hydrogen production for tomorrow. This also meant sweeping tax reforms, which he said are underway.

“The world knows Nigeria as a leader in the energy sector. Our vast gas deposits and business-friendly environment make us an attractive investment destination.

“But we are going a step further now. We are creating fiscal responsibility and tax reforms as we reform our financial institutions to accommodate foreign investments expeditiously,” said President Tinubu.

He also appraised the summit of the country’s intentional move toward developing labour-intensive sectors of the Nigerian economy for massive job creation and a new emphasis on technological progress and new opportunities in Nigeria’s rapidly expanding information and communications technology space.

The President assured potential investors that Nigeria has moved beyond restrictive policies, and today, capital can be moved in and out of the country freely, providing flexibility for investors.

He argued, “Nigeria has consolidated its democracy with several consecutive handovers of power.

“There is stability and predictability in the socio-political development of our country, which provides a conducive atmosphere for business operations and investment.”

The Nigerian leader also persuaded German automobile firms to establish manufacturing plants in Nigeria; he invited German businesses to take advantage of investment opportunities in multiple sectors following the successful visit of the German Chancellor to Nigeria in October.

Speaking earlier, German Chancellor Olaf Scholz noted the dynamic and evolving nature of economic relations between the developed and developing nations of the world as he positions Germany to enhance partnership with Nigeria and Africa on a mutually beneficial basis.

Olaf noted, “To be clear, this is not about traditional development aid with donor-recipient schemes. Instead, we now focus on investments that yield benefits for both parties.

“In Germany, as we strive for climate neutrality by 2045, we anticipate a substantial demand for green hydrogen, a considerable portion of which we plan to import, including from Africa.”

The German leader reasoned that many African countries possess larger potentials for renewable energy and competitive hydrogen production than we do.

However, he is convinced that fantastic opportunities abound for expanding cooperation between German and African companies in this context.

“I highlighted this during my visit to Nigeria, where we already operate a hydrogen office and aspire to be a partner in the ambitious expansion of renewable energies,” the Chancellor stated.

Other panelists at the discussion were President Alassane Ouattara of Côte d’Ivoire; Prime Minister Aziz Akhannouch of Morocco; President Macky Sall of Senegal; Sabine Dall’Omo, Chairperson of Afrika-Verein (German-African Business Association); and CEO of Sub-Saharan Africa, Siemens AG.

On Tuesday (today), the President will host notable German Business Chief Executives at a Nigeria-Germany Business Roundtable in Berlin, Germany.

Federation account receives N1trn in four months, says FG

Also, the Minister of Finance and Coordinating Minister of Economy, Wale Edun, says the Federation Account witnessed improved revenue inflow since the removal of subsidy from an average of N650 billion monthly to over N1 trillion in the last four months.

Edun stated this on Monday at a four-day retreat organised for members of the Federation Account Allocation Committee in Asaba, the Delta State capital.

The minister’s speech was read by the ministry’s Permanent Secretary, Okokon Udo, who commended FAAC for the theme of the retreat “Creating a Resilient Economy through Diversification of the Nation’s Revenue”

He said, “I commend your choice of the theme because of the suitability and the utmost attention the current administration of Bola Tinubu has directed to domestic revenue mobilisation.

“The economic reforms which this administration has undertaken since its inception in May, 2023 clearly outlined the right steps to transformation of the country’s economy.

“In less than six months of the administration, we have witnessed the introduction of important reforms, such as petroleum subsidy removal, fiscal and monetary policies reforms aimed at removing multiple taxation among others.

“The Federation Account in particular is witnessing improved revenue inflow since the removal of subsidy from an average of N650 billion monthly to over N1 trillion in the last four months.

“The government had for long realised that petroleum subsidy is not sustainable given it erodes revenues that should have been available to fund viable expenditures that are critical to the wellbeing of the populace.”

He said achieving tax revenue to GDP target of 22 per cent and tax to GDP of 18 per cent by 2026 are parts of the cardinal objectives of Tinubu’s administration.

Equities market retreats as investors offload N57.3bn

Meanwhile, the bears gained dominance on the Nigerian capital market at the close of Mondays’ trading as the benchmark index, the NGX ASI, declined by 0.15 percent to 71,008.70 points ending the four days of bullish streak from profit booking activities from mid-large cap stocks.

Resultantly, a total of N57.31 billion was wiped out from investors’ pocket as market cap tanked to N39.05 trillion as the ASI’s year-to-date return decreased to 38.55 percent.

The weak performance was driven by selloffs in Tier – 1 banking namely ZENITHBANK, STANBIC and UBA shedding 0.7 percent, 7.08 percent, and 0.48 percent respectively offset demand for GTCO, GEREGU and OANDO up by 0.27 percent, 0.88 percent and 3.42 percent each thus pressuring the market to close in the red.

The market, however, recorded more gainers as 36 stocks advanced while 15 stocks posted losses. There was noticeable adverse movement in the share prices of RTBRISCOE (-9.84%), PRESTIGE (-9.09%), STANBIC (-7.08%), CWG (-3.14%) and CAVERTON (-2.78%) leading the downward trend.

Across the sectors, performance was downbeat as the NGX Banking and Consumer Goods posted losses of 0.36 percent and 0.09 percent in that order, while the Oil/Gas and Industrial Goods sectors remained flat. However, the Insurance sector was the sole gainer, advancing by 0.50 percent.

Elsewhere, trading activity saw further decline as the total volume and value plunged by 18.83 percent and 27.77 percent to 358.45 million units, valued at N4.36 billion, respectively. Nevertheless, the total deals for the day surged by 11.35 percent to 6,551 trades.

At the conclusion of the trading session, ACCESSCORP emerged as the most actively traded security, with a total traded volume of 27.58 million units valued at N474.63 million, involving 284 trades, while ZENITHBANK was the most traded in terms of value, amounting to N502.95 million.