Federal Govt, Nigerians Urge To Prioritise Savings

Governments and Nigerians must prioritise savings and local investment to grow the economy and attract foreign capital, Prof. Abdul Adamu has advised.

Adamu, a professor of Finance and Capital Market at Nasarawa State University, Keffi (NSUK ), delivered the charge at the institution’s 62nd Inaugural Lecture titled, “Reimagining Nigeria’s Finance In Flux: The Savings-First Investment Paradigm.”

He argued that Nigeria’s push for foreign investment is misplaced, pointing out that while foreign capital helps manufacturing firms at the micro level, his research shows that national economic growth is what draws investors.

“It is the growth of our economy that causes foreign investors to come. That means they pursue where they can get the highest return,” Adamu said.

“We should try to save and invest in our economy first. And when our economy grows, foreign investors will come,” he added.

Adamu said the 2009 global financial crisis and Nigeria’s recurring volatility inspired the lecture.

He called for a shift from “opportunism” to a model built on savings, structure and purpose.

For the strategy to work, he listed two conditions. First, government must safeguard digital savings. “When people save, and somebody can crack the technology and take away people’s money, nobody will have confidence in the savings,” he said.

He said deliberate infrastructure provision is also key to driving the process.

He described Nigeria’s infrastructure as “epileptic” and said SMEs cannot innovate without it.

Also speaking, the Vice Chancellor of the Institution, Prof. Sa’adatu Hassan Liman, represented by DVC Prof. Halima Kutigi, said the lecture addresses Nigeria’s “finance influx” of volatile exchange rates, inflation, and capital flight.

“The savings-first investment paradigm challenges the culture of spend now, save later,” Kutigi said. She urged the university community and policymakers to adopt the habit. “If this lecture changes one policy, one product, or one personal habit, then we have succeeded.”