In a significant event, the Lagos Business School is set to host U.S. Deputy Secretary of the Treasury, Wally Adeyemo, for a discussion on Nigeria’s macroeconomic framework and its impact on foreign investments. Adeyemo emphasized that Nigeria must establish a robust macroeconomic framework to attract dollar-denominated foreign direct investments and foster economic growth.
Speaking during a forum with business leaders in Lagos on Monday, September 18, 2023, Adeyemo lauded the Nigerian government’s initial steps in terms of fiscal policy and exchange rate unification. However, he stressed that more comprehensive efforts are necessary to make Nigeria an attractive destination for foreign direct investment.
Adeyemo stated, “Nigeria lacks a macroeconomic framework that is going to help to bring more foreign direct investments, including dollar-based foreign investments, into the country.” He acknowledged the positive initiatives taken by the government but underscored the need for further actions.
The U.S. Deputy Secretary expressed confidence that as companies worldwide become more comfortable with Nigeria’s approach and reforms, the country will increasingly become a preferred destination for foreign investments, including those denominated in dollars.
Regarding the proposed reforms by the Nigerian government, Adeyemo cautioned that they might not yield quick solutions due to the economic challenges faced over the past few years, including the impact of COVID-19, the Russia-Ukraine war, and an unclear exchange rate policy.
He emphasized the importance of ensuring that Nigerians who have been most affected by these challenges are supported during the transition. Adeyemo highlighted the significance of putting reforms in place to provide security to investors and facilitate capital inflow and outflow.
Adeyemo expressed the United States’ optimism about Nigeria’s potential, driven by its population. He revealed that the U.S. government and international institutions such as the World Bank and the African Development Bank (AfDB) are ready to partner with Nigeria in implementing the necessary reforms and easing the transition for those affected by economic difficulties.
Furthermore, Adeyemo pointed out that the United States is a significant foreign investor in Nigeria and highlighted the country’s role as the second-largest African trading partner with the U.S. In 2022, the U.S. government provided over $1 billion in assistance to Nigeria, primarily aimed at improving healthcare access and reducing food insecurity among Nigerians.
