Nigeria poised to draw in $20 billion in foreign investment next year, according to Tinubu

President Bola Tinubu announced on Thursday that Nigeria is poised to secure nearly $20 billion in foreign direct investment by the end of 2026, citing his administration's efforts to eliminate regulatory hurdles, stabilize the macroeconomy, and implement transparency reforms.

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This proclamation was made during the Africa CEO Forum in Kigali, Rwanda, where Tinubu advocated for African self-sufficiency and the integration of continental resources, emphasizing the need for Africa to cease exporting raw materials and instead produce finished products domestically.

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Alongside Gabonese President Brice Clotaire Oligui Nguema, and moderated by British journalist Zainab Badawi, Tinubu stressed that Africa must utilize its own resources to finance development, rather than relying on external sources, and that his administration's reforms have created an attractive environment for foreign investment.

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Tinubu stated, "By removing regulatory bottlenecks, we are providing the necessary incentives for direct foreign investment in the country, and I am confident that Nigeria will attract close to $20 billion in foreign direct investments this year alone.

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Addressing the issue of value addition, Tinubu declared that the era of exporting unprocessed resources from Nigeria is over, and that the country will now prioritize adding value to its raw materials, citing the potential to produce car batteries using Nigerian minerals.

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Regarding the Dangote Petroleum Refinery, which produces 650,000 barrels per day and meets approximately 70 per cent of Nigeria's fuel needs, Tinubu attributed its success to a government-private sector partnership, and noted that his administration supported the project by providing a favourable business environment and access to crude oil.

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Tinubu explained that his approach to cross-border payment challenges involved denominating crude oil sales to the domestic refinery in naira, thereby eliminating the need for letters of credit, bank scrambling, and exchange rate instability.

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He also criticized Western credit rating agencies for undervaluing African economies, citing the example of Rwanda's 9.4 per cent growth last year, and argued that investment requires transparency, accountability, and forthrightness.

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Tinubu called for the recapitalization of financial institutions and challenged the dominance of Western credit rating agencies, which he believes have consistently underestimated the potential of African economies.

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On tax reform, Tinubu cited the "Lagos model", which has contributed to Lagos becoming the fifth-largest economy in Africa, and noted that similar reforms are being implemented at the national level, with the goal of creating a simple and accessible tax system.

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He explained that the new tax system allows citizens to pay their taxes using their telephones and access their tax information easily, making it more convenient and transparent.

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Regarding agriculture, Tinubu highlighted the development of 6,000 mechanized agricultural zones across Nigeria, a government buy-back program for farmers, and the construction of the 1,000-kilometre Sokoto-Badagry road, which links parts of the West African corridor.

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He emphasized the importance of providing energy sources for preserving agricultural products, buying back crops from farmers when prices are low, and providing storage silos to help farmers manage their produce more effectively.

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Tinubu also disclosed that Nigeria has laid over 90,000 kilometres of fibre optic network across the country, which will enable the provision of digital lessons to children, communication with farmers and traders, and the introduction of AI and e-commerce.

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He noted that this infrastructure investment is crucial for Africa to leapfrog into the digital revolution and emphasized the need for African countries to work together to achieve this goal.

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Tinubu emphasized the importance of empowering Nigerian youths to participate in the digital revolution, stating that as a politician, he must ensure they are prepared for this shift, or risk being voted out of office.

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The Africa CEO Forum, which continues through Friday in Kigali, brings together business leaders and heads of state to discuss African economic integration and private sector growth, with the goal of driving development and cooperation across the continent.