Stakeholders have raised concerns over the investment climate in Nigeria following plans by the former President, Olusegun Obasanjo to invest $700 million (approximately N1.75 trillion) in Cameroon.
LEADERSHIP reported that the former President through his firm, Agro-Allied Business Ltd (OABL), will launch investment this April into strategic sectors; including agriculture, maritime logistics, hospitality and energy with significant operations centered around the Kribi deep-sea port.
OABL’s strategic expansion includes acquiring 610 hectares for maize and soybean cultivation, establishing fertilizer distribution and warehouse infrastructure and setting up a 10-hectare wood processing facility in Cameroon.
Additionally, the company will provide transshipment services to decongest Nigerian ports and construct oil and gas storage terminals for ship refueling.
A five-star hotel is also in the works to support regional business and tourism.
While the investment aligns with the African Continental Free Trade Area (AfCFTA) objectives, to foster intra-African trade and strengthen supply chains, stakeholders in Nigeria have expressed mixed reactions.
They believe that Obasanjo’s decision to invest in Cameroon serves as a reminder of Nigeria’s need to foster a more competitive and secure business environment.
Reacting to the development in a chat with LEADERSHIP, president of the All Farmers Association of Nigeria (AFAN), Kabir Ibrahim voiced concerns about Obasanjo’s decision to invest in Cameroon.
He stated that farmers would have been a lot happier if such funds had been injected into investment in Nigeria.
He warned that such moves could send the wrong signal to local farmers about the profitability and safety of agricultural investments within the country.
Ibrahim said, “I would have certainly been a lot happier if he invested this colossal sum in Nigeria. It might send the wrong signal to our farmers that the profitability and safety of investment in agriculture are higher there than here.”
Deputy director at the Centre for Food Safety and Agricultural Research (CEFSAR), Dr. Segun Adebayo, who spoke with LEADERSHIP while acknowledging the rationale behind the move but lamented Nigeria’s unfriendly investment environment.
“With the current security challenges in Nigeria, it is not surprising that a Nigerian investor would choose to take such an investment to a neighboring country. It is a win for Africa, but it’s unfortunate that we couldn’t facilitate such investments within Nigeria.
So with the African free trade, continental free trade agreement, the yield and the investment would benefit Nigeria eventually and other parts of Africa”.
Adebayo also pointed out that Aliko Dangote has similarly pursued major investments outside Nigeria, emphasising that if ease of doing business policies remain unfavorable, more investors may seek opportunities abroad.
