ICAN deplores FDI decline in 2023 amid PEBEC launch

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Iof Chartered Accountants of Nigeria ( ICAN) has deplored dip of about 69 per cent and 44 per cent in foreign direct investment ( FDI) inflow in the first and third quarters of 2023 amid launch of the Presidential Enabling Business Environment Council ( PEBEC) in 2016 and numerous forum shopping.

Its president, Dr Innocent Okwuosa, in a publication entitled, “ICAN Position Paper: Attracting Foreign Direct Investment,” pointed out that data from the Nigerian Bureau of Statistics ( NBS) showed that “on a year- onyear comparison, there was a substantial 69 per cent decrease, as FDI fell from $ 155 million in Q1 2022 to a paltry $ 48 million in Q1 2023. In Q3, 2023, it was $ 654.65 million, compared to $ 1,159.67 million recorded in Q3, 2022, indicating a decline of about 44 per cent.”

He submitted that the downward trend reflects the reality of challenges businesses face, suggesting that they should be addressed by the current administration to attract FDIS.

Okwuosa said exodus in the country’s industrial sector since August 2023 when GSK announced its departure and divestments by Truworths, Etisalat, Exxonmobil, Tiger Brands, HSBC, Woolworths, Shoprite, InterContinental Hotel Group and others was a clear indication “that initiatives ( like) PEBEC may not have created the ease of doing business that can attract and retain FDI, after all.”

He noted that the challenges in Nigeria’s business environment are multifaceted, listing security concerns, infrastructural decay, regulatory constraints and policy inconsistency.

These factors and others, the ICAN boss stressed, have created a high- risk environment for sustainable business operations in Nigeria.

He added that a gap in infrastructure, particularly in critical areas such as power, transportation, human capital and technology amplifies operational challenges for businesses.