Labour Occasion presidential candidate within the 2023 election, Peter Obi, has cited recent economic information to criticise the President Bola Tinubu’s authorities’s dealing with of the financial system.
Obi warned that poor management and weak governance are driving away sustainable overseas funding.
The previous Anambra governor’ assertion comes amid claim by WTO DG, Ngozi Okonjo-Iweala, on Thursday that the Nigeria’s financial system has stabilized underneath Tinubu.
She stated the reforms underneath Tinubu’s administration have been shifting in the correct route.
Okonjo-Iweala spoke to State Home correspondents after a courtesy go to to the President.
Nonetheless, in a put up on X on Friday, Obi stated: “FDI to Nigeria Declines Amidst Never-ending World Galivanting and Uncoordinated Reforms. Whereas the President, Ministers, and different authorities officers proceed their world galivanting searching for FDI, our poor efficiency in key governance indicators, equivalent to rule of regulation, regulatory high quality, authorities effectiveness, and voice and accountability, continues to show that you just can’t entice sustainable overseas funding with poor management and governance.”
Citing a latest Nationwide Bureau of Statistics report, he famous that International Direct Funding (FDI) to Nigeria fell by about 70% within the first quarter of 2025, dropping to $126.29 million from $421.8 million within the final quarter of 2024.
In line with him, of the $5.64 billion complete capital importation in Q1 2025, FDI accounted for less than 2.24%, in comparison with 8.2% in This autumn 2024.
“Disturbingly, about 90% of the imported capital went into speculative cash market devices,” Obi stated. “With such a excessive proportion of capital importation flowing into speculative investments, the impression on industrial development or job creation is very insignificant and elusive, given the benefit with which such ‘scorching cash’ can exit the financial system.”
He added that capital flows to the manufacturing sector declined by 32.1%, falling to $129.92 million in Q1 2025 from $191.92 million in the identical quarter of 2023.
“In 2024, whereas world FDI flows declined, FDI to Africa considerably elevated to $97 billion—an increase of about 75% in comparison with 2023,” Obi acknowledged. “Egypt attracted the best share in Africa, with $46.58 billion. Different prime recipients included Ethiopia ($3.98 billion), Côte d’Ivoire ($3.80 billion), Mozambique ($3.55 billion), Uganda ($3.30 billion), Democratic Republic of Congo ($3.11 billion), South Africa ($2.47 billion), Namibia ($2.06 billion), Senegal ($2.02 billion), Guinea ($1.83 billion), and Morocco ($1.64 billion).”
He lamented that Nigeria obtained solely $1.08 billion in 2024, about 1% of Africa’s complete, representing a 42% drop from 2023. “Worse nonetheless, after this 42% drop between 2023 and 2024, FDI to Nigeria has additional declined by 75% between This autumn 2024 and Q1 2025,” he stated.
“We can’t obtain sustainable development and growth with ineffective management and a weak authorities,” Obi added.
