Minister of budget and economic planning Atiku Abubakar Bagudu has said private sector investment in the Nigerian economy will help defeat insecurity in the country, and not fears or negative perceptions.
The minister also said there is an increasing interest in Nigeria and the nation’s economy. He said, “It is of no use if people are afraid of insecurity and they have run away and they are not willing to go back to their farms.”
He made the remarks yesterday at a press conference to round up the 29th Nigerian Economic Summit with the theme ‘Partway to Sustainable Economic Transformation and Inclusion. The 2-day summit was held in Abuja.
Nigeria is faced with a multidimensional insecurity situation that has significantly affected the supply chain and caused high inflation due to terrorists’ attacks on farmers and their farmlands. At least 352 in Northern Nigeria, comprising 216 killed farmers and 136 kidnapped farmers were affected by insecurity in 2022 alone. The figure has risen since the beginning of this year when farming activities have been significantly dragged down.
“It’s investment and confidence in our economy that will make us defeat insecurity,” he started. He said the pledge by various local private sector players to commit more investments in the Nigerian economy is an indication of confidence in the economy. Bagudu commended private sector resilience in the economy.
“That is the biggest selling point for international investors. We are increasingly seeing interest in Nigeria,” Bagudu started.
He said the challenges facing the economy have been addressed by President Bola Tinubu and coordinating minister of the economy and the CBN governor.
In July this year, the World Bank said foreign direct investment in Nigeria was brought low by insecurity concerns, limited forex availability, and other structural challenges. According to the bank, the challenges have also affected the net withdrawal of equity by foreign investors.
Economic analysts say that insecurity affects Nigeria’s economic growth by drying out investments, increasing unemployment and dwindling government revenue, amongst others. Despite these effects, government capital expenditure on internal security did not grow astronomically to tackle the hydra-headed problem that has created a bad impression about the economy.
He however acknowledged that insecurity is a menace with negative impact.
