P&G: Political Speeches To Foreign Investors Cannot Yield Results – Moghalu Reacts to Exit of Multinational Companies In Nigeria

Posted by Thandiubani on Fri 08th Dec, 2023 - tori.ng

The former apex bank chief said that Nigeria has a long way to go in restoring the confidence of international and local investors.

A former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu has revealed why multinational companies are leaving the country.

According to him, political speeches will not be adequate to put an end to the mass exodus of multinationals in the country.

He said this in a tweet on Friday.

According to the former apex bank chief, Nigeria has a long way to go in restoring the confidence of international and local investors.

Lamenting that the exit of the international brand was worrying, Moghalu said that the situation could be reversed if national and state authorities listened to expert advice.

Arguing that having the largest population of poor people is not enough, Moghalu called for the need to increase the production capacity of the country.

The statement released on the official X handle of Moghalu read, “Nigeria has a long way to go to attract investor confidence – int’l and local. The exit of respected global brands is worrying. When I am in Egypt or South Africa, I see a very big difference in investor perceptions & attitudes – despite the internal challenges in those countries. This situation can be reversed if our national & state authorities (a foreign diplomat told me some states are actually now seen as better partners by investors than the federal government) will listen to expert advice & take the necessary steps, mainly in governance/rule of law.

“At a second level you have the macroeconomic environment which is very weak. Then you have the matter of infrastructure and skills. The challenge must be dealt with at these three levels. Speeches to foreign investors in foreign capitals by political leaders cannot yield results without these fundamentals being fixed, and in fact are unnecessary if the business environment is basically attractive. Capital scans the world, on its own, looking for profit. On what basis are we, really, the “giant” of Africa? Having the largest population (most of whom are poor and getting poorer) is not enough. It’s the PRODUCTIVITY of any economy that matters, and that depends on the three factors I mentioned above.”

Recall that multinational giant Procter and Gamble will be exiting the country in 2024. The development had sparked worries regarding job loss and the increasing unemployment rate.