Foreign direct investments withdrawal will continue in Nigeria – EIU

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The Economist Intelligence Unit (EIU) has issued a report stating that indigenous oil companies acquiring assets from international oil companies might struggle to match their investing power. According to the EIU’s latest Country Report on Nigeria, indigenous companies are unlikely to have the same financial resources as multinational corporations, which have historically driven Nigeria’s oil industry.

The report expresses concerns about the possibility of a net withdrawal of foreign direct investment in 2024, continuing a trend observed in the previous year. It attributes this trend to challenges within Nigeria’s business environment, including corruption, cronyism, insecurity, and inadequate infrastructure. Multinational companies are increasingly opting to leave Nigeria or reduce their presence due to these challenges.

The decision of some foreign oil companies to sell their onshore oil businesses and relocate offshore has drawn attention. Governor Hope Uzodinma of Imo State has criticized these companies, suggesting that their departure could create opportunities for indigenous companies.

Source: Punch

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