To revitalize the economy, Nigeria intends to enhance incentives for foreign investors to counter a decline in capital inflow into the country.
The administration plans to implement measures aimed at eliminating double taxation and facilitating swift remittances of foreign funds, according to Doris Uzoka-Anite, the Minister of Industry, Trade, and Investment, in a recent interview.
“We have the free-trade zones where they can situate their businesses, export and import their raw materials without any taxes,” she said. She called it a “strong incentive” for foreign direct investment, which plunged 52% to $698 million in the six years through 2021.
Since assuming office in May, President Bola Tinubu has initiated reforms to rejuvenate Africa’s largest economy, which had been in a state of decline for almost a decade.
These reforms include the elimination of a $10 billion annual fuel subsidy and the liberalization of the foreign exchange market, resulting in a devaluation of the naira by over 40%.
According to Bloomberg, Nigeria has undertaken a review of its bilateral agreements with various countries to attract investment.
In September, the country entered into several agreements with India, paving the way for the establishment of auto and steel factories in Africa’s leading oil-producing nation. According to Uzoka-Anite, investors from India are beginning to materialize their commitments.
Key is to show investors their money will be protected, she said.
The minister was in Saudi Arabia as part of a Nigerian delegation meeting officials in the Gulf country after the two established a business council and joint chamber of commerce, industry, mines and agriculture. “We’re very keen on making sure that the investments happen very quickly,” she said.
Source: Business Insider Africa