From Romanus Ugwu, Abuja
A group, under the auspices of Independent Media and Policy Initiative (IMPI), has rated Nigeria economy high for robust investment the President Tinubu administration.
IMPI stressed that contrary to the narrative of an economy shorn of investor confidence, there are verifiable data to show that Nigeria has robust economic investment climate.
The policy think tank, in a policy statement signed by its Chairman, Niyi Akinsiju, on Tuesday in Abuja, noted that it came to that conclusion after a comparative analysis between Nigeria and some other jurisdictions including India and the United Kingdom (UK).
The statement read: “Compared to the announcement by Manufacturers Association of Nigeria (MAN) that 767 companies shutdown in 2023, an apparent public revelation to serve as a depression trigger for the country, people and government, Small Business advocacy group in the United Kingdom frames 345,000 business closures in that country as: “More businesses closing down than starting up for the first time in 12 years.”
“This, by our consideration, is an objective rendition of data. It is obvious that the 767 companies shutdown in Nigeria do not in any way come close to the 345,000 closures recorded in the United Kingdom in that same period.
“Neither can the number be compared to the 460,000 companies that shutdown every quarter, that is every three months, in China or the 10,655 Micro, Small and Medium Enterprises (MSMEs) shutdown in 2022-2023 in India.
“As routinely rendered, we are further informed by the Indian data that there were over 11,000 new firms started for every one of the 175 shutdowns in 2022.
“Against this background, we require, for instance that while so much dust was raised over the exit of giant drug makers like GSK Plc and Sanofi, among others, the data should have also included statistics circulated by the National Agency for Food & Drug Administration and Control (NAFDAC) which indicated that 105 applications for the construction of drug manufacturing facilities have been approved across the country and that 35 per cent of the approved applications have completed construction.
“This is inclusive of the fact that over 20 newly registered local drug manufacturers have cumulatively invested over $2 billion in the erection and completion of WHO-compliant facilities that manufacture quality pharmaceuticals and essential medicines for Nigerians,” it defended.
Reacting further, IMPI also noted that advocacy groups that are always quick to dig up negative narratives, prefer to ignore the many positives in the economy inspite of global headwinds.
“We also note the condescending pretension by the usual suspects, the advocacy groups and politicians, over the news of the relocation of Unilever tea brand production to Nigeria. Ordinarily, this relocation news should not have elicited much excitement because it would have been a strictly business process decision but as it were, such decisions are now politicised and sensationalised to serve the mundane sentiments of opposition elements and corporate advocacy groups.
“Another jurisdictional contrast will suffice to prove this. While profits at China’s industrial firms fell 2.3 per cent in 2023, their second straight yearly decline, Nigeria’s National Bureau of Statistic data show that Company Income Tax (CIT) rose by 73 percent year-on-year from N2.82 trillion in the 2022 financial year to N4.89 trillion in the 2023 financial year.
“This huge profit difference is recorded despite headwinds that had continued to buffet the economic space. The indication deriving from this is that whatever may be the challenges inherent in the Nigerian economic space, the country avails investors the best possible opportunities for returns on investment. This is the kind of economic accomplishment that corporate advocacy groups and politicians should celebrate.
“The impressive CIT accruals into the federation account are validated by the standing of Nigerian based companies on the Financial Times ranking of Africa’s 100 fastest growing companies in 2023.
“Nigeria’s incredible showing on that ranking manifests in companies based in the country occupying 27 places with two of them – Afex Commodities Exchange Ltd and Moniepoint Inc – leading the continental pack of 100 companies. This avails Nigeria 27 reasons to be jubilant despite the challenges the country has had to contend with.
“On the aggregate, this speaks to the resilience of Nigeria’s economy especially when situated in the trajectory of things to happen in the year 2024 coming in the build-up that can be ascribed to the policy deployment of President Bola Ahmed Tinubu,” IMPI noted in the statement.