The Federal Government needs to be decisive in dealing with the insecurity problem currently portraying the nation in bad light in order to attract foreign investors into the country and? promote economic and industrial development, writes FLORENCE UDOH
Across the globe, investors are faced with the task of making business decisions that would not only bring about business growth but also contribute towards the economy of any nation where their investments are.
With recent reports by the United Nations Conference on Trade and Development benchmark (UNCTAD) which showed that about $1.4trillion investment capital circulates globally, this figure indicates that capital in the global economy is volatile with a lot of indicators considered by investors before they decide to invest in one country or the other. One of such index is security.
As insecurity is a risk factor which investors all over the world dread, this uncertainty is not only considered a bad omen for business, it sends warning signals to investors to take their investible fund to another country where there is adequate or a semblance of security.
While the free flow of capital across national borders don’t depend solely on what political leaders tell the rest of the world, they too ensure that measures are in place to correct the negative impressions occasioned by insecurity which might place the nation’s economy in danger and subsequently to ruins.
As Nigeria’s internal security remains extremely volatile following a spate of recent shootings, bombings and suicide assaults in the northern cities of? Jos,?? Niger? State ( Xmas?? day? bombing )? and?? now?? Kano?? and? Balyesa?? and other parts of the country, this climate of uncertainty has created a dangerous trend that had before now remained alien in the nation’s index of social crimes.
With Boko Haram claiming responsibility of several attacks on civilians and military installations in the country, the religious sect has threatened to cause more havoc on the nation’s security arrangement.
Incidentally, the group not only carried out their threat, infuriating Nigerians in the process, it also showed the ineptitude of security agencies in addressing the situation. Until now, such occurrence had been associated with distant lands such as Iraq, Iran, Pakistan, Afghanistan, Middle-East, among others.
With the turn of events, bomb attacks has been introduced into the new wave of violence not only to the chagrin of Nigerians, it has seemingly become a regular trend living in their trail tears and blood from victims and their relations. Incidentally, while the merchants of death appear to be having their way, no one has so far been tried and convicted on the matter.
As the spate of insecurity continues to wreck the land, Nigerians are worried that the country is gradually slipping? into a state of social instability which would not only scare away potential investors but could further affect business activities across the country.
Commenting on the issue, Chukwudi Owo, president and chief executive, ResourceField Incorporated, a policy management consultancy and real estate company, disclosed that the failure of previous governments to find out the cause of religious induced crisis was what is responsible today for the mass violence in the land.
He said that, that negligence,has resurfaced today with the name ‘Boko Haram,’ escalating violence through bombings and wanton waste of? valuable lives and investments.
While noting that looking strictly at Boko Haram, one would? see ‘Almajiris’; people taken away from formal education system which ought not to be, Owo maintained that any government should ensure that its citizens acquired basic primary and secondary education.
In his words:“Due to poverty, unemployment and their socialisation processes, these youths have grown up to hate western education, turning them against the country. The effect is that lives are being wasted ,? while foreign investors now see Nigeria as a high risk country to invest in. The truth is that investors don’t discriminate; they go to where their investments will grow. These are investors who can create jobs for our teeming youths.
“Sadly, the crisis in the country is taking its toll on businesses. Our company was about to sign a business funding investment in the real estate sector to the tune of? $1.2 billion, to build houses in Abuja and Lagos, but the independence day bombing last year scared the investors away. Several other such investments have been lost to the insecurity and this does not augur well for the country.”
Lending his view, Ona Ekhomu, a policy analyst and security consultant, feels that insecurity would have a very negative effect on foreign direct investment (FDI). While stating that insecurity and FDI have negative correlation, Ekhomu disclosed that with the rate of insecurity in Nigeria, in terms of investment flow, the uncertainty was too high.
“Local?? and??? foreign investors will not like to put their money in long term investments because of insecurity. They would rather consider short term investments. Insecurity discourages investment flows. For investment to come, there must be security for investors and their investments. The state of bombings is not good for Nigeria’s image and branding because all efforts to brand Nigeria without security amounts to nothing,” Ekhomu, who is the chairman, Trans-World Security, stated.
Echoing the sentiment of Ekhomu, Director-General, Nigeria Economic Summit Group (NESG), Frank Nweke Jnr, noted that the efforts by the President Goodluck Jonathan-administration to attract foreign investment and transform the economy would come to nothing if the spate of insecurity did not cease, as no foreign investor would invest in an unsecured environment.