Stakeholders in the trade and industry sectors are worried over the persistent insecurity in the Northern part of the country, insisting that it could dampen the confidence of investors who wish to tap into windows of opportunities presented by Nigeria’s $510 billion economy.
“It would be difficult to attract investors at this time just as the risk of long-term investments in the economy has been heightened by prevailing conditions. The tempo of economic activities in the Northern part of the country has declined, access to the markets by companies in the Southern part of the country has reduced resulting in loss of sales; while many enterprises have relocated,’’ said Remi Bello, president, Lagos Chamber of Commerce and Industry (LCCI), in a statement released to BusinessDay.
The North-East part of the country has been under siege by Boko Haram insurgents for over 24 months.
So far, there have been incessant attacks on investments and businesses, especially those in the category of the small- and medium-scale enterprises (SMEs).
Many mega manufacturing companies such as Cadbury, Nestle, among others have withdrawn their representatives in the restive states of Adamawa, Yobe and Borno, among others, and stationed them in Abuja and other less volatile states.
“Businessmen from Enugu, Aba, Lagos, Port Harcourt, Sokoto and other places, who used to buy bags of beans and groundnut, among other items in the state, are now becoming increasingly afraid and finding alternative markets. The popular Monday, Friday and Geidam markets, which used to operate on 24- hour basis before Boko Haram insurgency, are now restricted to between 8am and 4pm,’’ said Shettima Dukar Jallaba, president, Yobe Chamber of Commerce and Industry.
Nigeria currently ranks 147 out of 189 in the World Bank 2014 Ease of Doing Business ranking.
This represents 9 points drop-off as the country was ranked 139 in 2013. Following the worsening trend, Bello said investment growth was imperative for job creation, poverty reduction and social stability, adding that efforts be made to end the insurgency in order to increase the declining investors’ confidence owing to uncertainties.
“Persistent insecurity impacts negatively on the economy just as declining private sector performance could result in job losses which could aggravate the state of insecurity. It is a case of mutually reinforcing conditions which underscores the strong nexus between the economy, investment, private sector performance and security situation. Persistent insecurity creates concerns about safety and aggravates uncertainty,’’ Bello stated.
ODINAKA ANUDU
