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Need for Foreign Investment as A Nigerian

Posted on August 9, 2021August 17, 2021 By Ugonna John

For every developing country, it is important to understand that foreign investment is needed for scaling and transforming a country. For a country to receive foreign investment, it must show the capacity to grow and outweigh boundaries. Nigeria is a country with such potential for maximum and exponential growth. All that is needed is to provide means and leverage for these growths to take place. As a Nigerian, there is much on how this affects getting foreign investment to grow any business – and having a proper understanding of how these things work is crucial.

For Nigeria as a country to attract this foreign investment, certain checklists would have to be put into place to make sure that such investment doesn’t end up a waste. These are the things that would be checked before Nigeria is even considered for foreign investment. Foreign investments are so important that – whatever is being invested into Nigeria has a way of influencing you as a Nigerian – that it benefits you financially, economically, and socially.

Why Do You Need Foreign Investment as a Nigerian?

Foreign investment is very important for developing countries with potential for emerging markets – assisting organizations with the necessary funding that is needed to expand internationally. When these things are done, it would drive the economy for growth – and as a result of that, it would increase jobs and wages.

Checklist to Attract Foreign Investment in Nigeria

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For Nigeria to attract foreign investors, some things would be checked to make sure that it favors both parties involved. This goes a long way in affecting you as a Nigerian because when foreign investments are made, it also indirectly affects your way of life and the things you do in general. So, to proceed to the checklist, these are the following things that are likely to be looked at by the foreign investment group on how it also benefits them such as;

  1. Bilateral Investment Relationships

Bilateral investment relationships are very much important as a country – it shows other countries how well you are spoken of outside in other countries. This would give them the belief that you are reliable and trustworthy. When there is a good bilateral relationship, investors will see such a country as a good place to put their investment in.

  1. Strong Points

Every country must have strong points in attracting foreign investment. But, accessing these investments would need these strong points to be checked such as;

  • Low and public debt ratings
  • Highest GDP as a continent
  • Agricultural potential and hydrocarbon resources
  • The capacity of the domestic market
  • Policies on public-private partnerships with foreign companies
  1. Weak points

Some certain obstacles can deprive a country of foreign investment such as;

  • Underdeveloped infrastructure
  • Failed judicial system
  • Inefficient tax systems
  • Lack of security can also deprive a country of getting foreign investment
  • Political stability

For Nigeria to grow in all ramifications, foreign investment is highly required to scale into profitability. Also, is to ensure measurable growth which will affect you as a Nigerian in the long run. Hardly will a developing country strive on its own without foreign investment – as this is the only way to transform its image for a better future.

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