There is no quick and easy solution to Nigeria’s economic challenges, the United States Government has disclosed.
The US Deputy Secretary of Treasury, Wally Adeyemo, who stated this at a forum with business leaders in Lagos, said the country lacks a macroeconomic framework to attract more dollar-denominated foreign direct investments into its economy.
He spoke at the Lagos Business School on the US–Nigeria Economic Relationship.
“There is no quick easy solution to those challenges, I want to be honest about that. That is what true partners are,” Adeyemo told his audience.
But ultimately, we know that by helping to make investments in Nigeria economy in your businesses, especially, SMEs, we can help build a type of ecosystem that can help Nigeria be successful over time,” he added.
The US Deputy Secretary, who arrived in Nigeria on Sunday, is on a visit to the country as part of the President Joe Biden administration’s commitment to deepening the US – Africa economic and trade relationship.
According to him, while the early steps of the new administration will help the country attract investors, there are still concerns from the investors as regards the repatriation of their funds.
Adeyemo, who was responding to a question about investments and the Nigerian economy from the audience, said, “Nigeria lacks a macroeconomic framework that is going to help to bring more foreign direct investments including dollar-based foreign investments into the country.
“The early steps the government has taken is good in terms of what they have done (fiscal policy), in terms of what they are trying to do with unifying the exchange rates. More needs to be done and they recognise that. The truth is as companies around the world become more comfortable with their approach, you would expect that Nigeria would be a destination for FDI.”
Adeyemo noted that the government needs to develop a macroeconomic framework that demonstrates its commitment to the fundamentals and this will in turn help attract foreign investors to the country and help the country’s economy thrive.
According to the Deputy Secretary, proposed reforms by the Nigerian government will not have bring quick solutions because things have been difficult economically over the past few years due to to COVID, the Russian-Ukraine war, and a confusing exchange rate policy.
“We need to make sure that as you are making the transition, which will take longer than anyone wants, that you are taking steps to make sure that you are helping Nigerians who are feeling it the most. But I think the most important point, is that you need to put reforms in place that allows people to bring in capital into the country in a way that they are secured and can take their money out when they choose to and they continue to make investments,” he said.
According to him, America is bullish on Nigeria because of its people.
He stated that the recently introduced reforms in Nigeria were long overdue.