President of the Dangote Group, Aliko Dangote has urged state governments on the need to create an enabling environment to attract more private sector investment. He stated that no state in Nigeria is not blessed with mineral resources, which could serve as a potential for industrial growth.
He further disclosed that there is a strong need for the states to look inward and put in place favorable economic policies that would promote investment generation within States.
In his words, “When states provide an enabling environment, it will incentive the private sector to invest and it will be a win-win situation for both the state and the private sector”.
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He gave an instance of Lagos state and the Lekki free trade zone, stating that the ease of doing business created by the state government had motivated private sector operators to establish companies within the area, thereby adding value to both the state and the nation’s economy.
He pointed out that the Nasarawa state government was able to attract the Dangote sugar plc multi-million dollar investment into the state due to its efforts to transform the state into an investment-friendly region.
Indeed an enabling environment is a key to boosting foreign investment in the country, which will no doubt positively affect the economy. The federal government must see the need to partner with private sectors to attract both local and foreign investors.
Asides from the effort of the federal government, there need to be all hands on deck from state governments to create an enabling environment in their states, to boost investment. Looking at the state of Nigeria’s economy, it demands that there is a need for economic diversification of mineral resources, which is present in all states in the country to deliver economic growth.
There is also the need for massive creation of industries, as well as expansion of existing industries to attract foreign investors. To achieve this feat, there must be the presence of focused and visionary leaders, and a well-thought-out institutional framework that will enable the creation of a sustainable conducive business and investment climate.
Also, there must also be friendly policies that will play an active role in attracting investors to invest in the country. What attracts investors is the enabling environment that the country provides which in the long run allows a business to thrive effortlessly.
Nigeria is richly blessed with 44 identified mineral resources across the 36 States, yet for many years, oil has remained the country’s top foreign exchange, while it imports some of these mineral resources present here in the country, which is not ideal.
Every state in Nigeria has exploitable solid minerals, yet it remains untapped. A look at Nigeria’s neighbor, Ghana, its mining industry provides 41 percent of its exports. Therefore, proper mining of these resources present in Nigeria can serve as a potential for industrial growth which will no doubt attract foreign investors.
There is a strong need for federal and state governments in the country to look inwardly and utilize these resources to develop the region, as well as attract foreign investors that will no doubt boost the nation’s economy.