{"id":1710,"date":"2016-10-26T14:13:49","date_gmt":"2016-10-26T13:13:49","guid":{"rendered":"https:\/\/blog.iese.edu\/africa\/?p=1710"},"modified":"2016-10-26T18:53:54","modified_gmt":"2016-10-26T17:53:54","slug":"foreign-direct-investment-in-nigeria","status":"publish","type":"post","link":"https:\/\/blog.iese.edu\/africa\/2016\/10\/26\/foreign-direct-investment-in-nigeria\/","title":{"rendered":"Foreign Direct Investment in Nigeria"},"content":{"rendered":"

Last week, I wrote about the potential for growth in Nigeria<\/a><\/strong>. That kept me thinking about the many opportunities<\/strong> companies have to contribute to the socioeconomic development of the country if investing in the right industries<\/strong> \u2013 and doing so in the right way! Wondering about foreign direct investment (FDI) in the country, I came across some interesting information* which I thought of sharing with you.<\/p>\n

In 2015, inward FDI in Nigeria was estimated at US$ 8.6 billion, down from US$ 10.8 billion in 2014 (21.2 % reduction). This means that Nigeria was the<\/strong> 2nd<\/sup> largest recipient of the capital invested in Africa (12.1%)<\/strong> only behind Egypt<\/strong> (20.6%).<\/p>\n

It came through 53 projects, and its sector distribution was the following:<\/p>\n

\"Foreign
Based on data provided by Analyse Africa<\/figcaption><\/figure>\n

The Africapitalism Institute<\/a>\u00a0considers a sector as strategic to the extent that it can deliver broad economic and social value in addition to financial results. These include \u2013 but are not restricted to — industries such as agriculture, power, healthcare, and finance.<\/p>\n

\"Picture\"<\/a>
Nigerian banks are foreign investors in other Africa countries<\/em><\/figcaption><\/figure>\n

Of outmost importance is how investments are made. Keeping transfer prices at fair levels and reinvesting profits in the host country can contribute to economic development. But investments go beyond capital flows. Investment decisions are made by business leaders who have a responsibility for how their projects are implemented. This includes labor conditions, respect for the environment, and so on.<\/p>\n

If you have this type of decision-making power, don\u2019t forget that you have a responsibility \u2013 and the capacity to benefit not only shareholders but all of your stakeholders.<\/p>\n

Any experiences or thoughts?<\/p>\n

*Nigeria by the Numbers<\/a>\u00a0\u2013 country report by Analyse Africa<\/a>\u00a0of the Financial Times<\/p>\n

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