Obasanjo’s $700 Million Investment in Cameroon Sparks Concerns Over Nigeria’s Business Climate

Former Nigerian President Olusegun Obasanjo, through his firm Agro-Allied Business Ltd (OABL), is set to invest $700 million in Cameroon’s strategic sectors, including agriculture, maritime logistics, hospitality, and energy. The investment, which will focus on the Kribi deep-sea port, is expected to include major projects like maize and soybean cultivation, fertilizer distribution infrastructure, and a wood processing facility. OABL is also planning to build oil and gas storage terminals and a five-star hotel to boost regional business and tourism.

Details of the Investment:
The proposed investments in Cameroon involve acquiring 610 hectares of land for agriculture, a 10-hectare wood processing facility, and the development of infrastructure such as fertilizer warehouses. OABL also plans to offer transshipment services to reduce congestion in Nigerian ports, while contributing to the establishment of oil and gas storage terminals. This move aligns with the goals of the African Continental Free Trade Area (AfCFTA), promoting intra-African trade and stronger supply chains.

Mixed Reactions in Nigeria:
Stakeholders in Nigeria have expressed concern about Obasanjo’s decision, viewing it as indicative of the challenges in the Nigerian investment climate. Kabir Ibrahim, president of the All Farmers Association of Nigeria (AFAN), lamented that such a substantial sum would have been better invested within Nigeria to benefit local farmers. Ibrahim fears that Obasanjo’s investment abroad may signal to Nigerian farmers that agricultural investments are more profitable and secure in neighboring countries.

Nigeria’s Unfriendly Investment Climate:
Experts, including Dr. Segun Adebayo from the Centre for Food Safety and Agricultural Research (CEFSAR), acknowledge the rationale behind the investment but highlight Nigeria’s difficult business environment, particularly security concerns. Adebayo noted that other major Nigerian investors, such as Aliko Dangote, have also expanded abroad due to unfavorable conditions in Nigeria. The move raises concerns that more investors may seek opportunities outside the country unless the ease of doing business improves.

Source: Leadership