FDI: Nigeria Set For $100bn Investments In Oil, Gas, Others

Nigeria is targeting up to $100 billion in investment deals as more than 100 global investors prepare to converge on Abuja in November, seeking opportunities across oil and gas, technology, renewable energy, agriculture, mining and other sectors of the economy.

The investment push comes against the backdrop of about $58 trillion in global capital reportedly sitting idle and searching for investment opportunities, according to the President of Business Summit Group, Haider Uzzaman.

Speaking with journalists on Tuesday in Abuja, Uzzaman said the International Investors Summit scheduled for November 10 and 11, would bring international investors face-to-face with Nigerian businesses, state governments and owners of investment-ready projects.

He said the targeted $100 billion investment portfolio would focus on properly structured and existing projects with viable business models, necessary documentation and clear pathways to implementation.

Other sectors targeted include infrastructure, tourism and hospitality, healthcare, human capital development and education.

Uzzaman said the huge amount of capital available globally presented Nigeria with a major opportunity, insisting that the challenge was not the availability of money but the country’s ability to present credible projects capable of attracting the funds.

He said: “How much money is sitting idle in the world? You know, $58 trillion as we are talking this morning. $58 trillion sitting idle.
The money is crying and saying, please take me, please help me, please use me.”

According to him, more than 100 global investors with an investment appetite of over $100 billion are expected at the Abuja summit.

“We are expecting to bring at least 100 plus global investors, big size, that have placed us to invest over $100 billion from here.

“During the summit, they want to close $100 billion of projects this time. They are targeting,” he added.

Uzzaman, however, cautioned Nigerian businesses and governments that the availability of the funds did not mean investors would simply arrive and hand out money.

“Now it will be the challenge for the Africans and the Nigerians as well, that how you get this money from the investors. It’s not that the investors will just come and throw the money and you just take home and go.

“No, it will be needing a professional business plan and professional standing and your credibility, trust and professionalism needs to be demonstrated to the investors, engage with them, discuss with them.”

He said most of the investors preferred sizeable projects valued at more than $10 million, particularly ventures that were already structured and ready to commence operations.

“Our investors mostly invest on the projects that are ready to go. Not the startup, not the micro size. Our investors preferably prefer project which is more than $10 million.”

Speaking further, he explained that the summit was designed to allow project owners and investors to meet directly, negotiate terms and, where both sides were satisfied, move towards signing agreements and commencing projects.

Uzzaman cited Plateau State as an example of the benefits of direct engagement with international investors, saying the state had secured investment commitments valued at more than $1 billion in the past six months following its participation in last year’s summit in Bangkok, Thailand.

“For the Plateau State itself, I think as of today, we signed about over $1 billion worth of project for investment in Plateau.

“We have harvested about a billion dollar investment for the state of Plateau alone during last six months..

According to him, the investments were expected to translate into actual projects as the funds were deployed as he revealed, “And these fruits will be seen in next few months because all these funds will be deployed and the project will be kicking off in next few months and over a period of time.”

The Business Summit president also disclosed that a group of Saudi Arabian investors was preparing to invest in livestock and poultry production in Nigeria, with plans to produce beef and chicken for export to Saudi Arabia.

“I can right now tell you a group from Saudi Arabia, they’re coming. They want to produce beef here, they want to produce chicken here and export it to Saudi Arabia 100%.”

He urged Nigerians with suitable land and agricultural opportunities to prepare to engage the investors during the November summit.

Addressing concerns over insecurity, infrastructure deficits and other challenges that could discourage foreign investors, Uzzaman said Nigeria remained attractive because of its population, natural resources and market opportunities.

“Knowing the difficulties, the problem will be there always where there is an opportunity. And when there is a problem for somebody, that’s an opportunity for someone else.”

He said Nigeria’s large population, agriculture and mining potential, as well as its oil and gas resources, remained major attractions.

“You have so much of natural resources, so much of mining potential, agriculture potential. You have 270 million population, that itself is a big market.

“Because you need to eat food. If you are talking about food itself is massive volume.”
He also cited Nigeria’s oil production and refining capacity as reasons investors should look towards the country.

“Which country, how many countries are producing 1.8 million barrels of oil a day? Which country is refining 700,000 barrels a day? How many countries? Not many,” he said.

On electricity, Uzzaman described the current level of investment in the sector as unacceptable, despite reforms aimed at opening up the market to private investment.

“I myself will invest in this, I can promise you. To produce electricity and reach out to your home.”

He said the ability of private investors to generate electricity and sell directly to consumers could unlock significant investment in the sector.

Uzzaman further stressed the need for closer collaboration between government and the private sector, saying governments that were serious about attracting foreign capital must be ready to present clear and viable investment opportunities like the Plateau State government.

“Both side is very serious. The government is very serious. They know what they’re doing. The investors know what they want and what they’re doing. So it’s easy to matchmaking,” he said.

He said Nigeria’s leading businessmen, including Aliko Dangote, Tony Elumelu and Rabiu Abdulsamad, had also helped to improve the country’s image globally by taking Nigerian businesses and investment opportunities to international markets.

Uzzaman said Nigeria was chosen to host the summit because of its population, economic size and position as a major investment destination in Africa.

“Nigeria is the biggest populated country, the economic leader in Africa, so we decided to host the summit in Nigeria and in Abuja,” he said.

The summit is expected to attract investors from more than 50 countries across Europe, the Americas, Asia, the Middle East and other regions.

Uzzaman said Business Summit Group had since 2016, worked to connect investors with businesses and governments seeking international capital, stressing that the Abuja meeting would focus on actual business engagements rather than speeches and ceremonies.

“We want investors to meet real businesses, real project owners and government representatives with investment-ready
opportunities.

“Our focus is on creating practical connections that can lead to transactions, partnerships, financing, technology transfer, expansion and job creation.

“Good projects need access to good investors, and good investors need access to credible, investment-ready projects. That is the connection we intend to facilitate in Abuja in November,” he added.