Kairos Capital CEO on how to improve Nigeria’s competitiveness post-COVID-19

Nigeria, often referred to as the 'giant of Africa', has recently found itself in an unfavorable position when it comes to attracting investments. A recent survey conducted by accounting firm Deloitte and CEOs of African businesses has revealed that Nigeria is not among the top five most attractive countries for investment destinations in Africa. The top spots have been claimed by Cote d'Ivoire, Kenya, Ghana, Senegal, and Rwanda, leaving Nigeria in a disappointing seventh place. This calls for a serious assessment of what Nigeria is doing wrong and how the country can reposition itself to improve its competitiveness post-COVID-19. In a TV news interview on CNBC Africa, Sam Chidoka, the Managing Director and CEO of Kairos Capital, sheds light on the challenges facing Nigeria and offers a compelling case for change. Chidoka emphasizes the need for Nigeria to address key issues such as policy inconsistency, currency instability, multiple taxes, insecurity, and corruption, which have been deterring investors from considering Nigeria as a favorable investment destination. These factors contribute to the negative perception that potential investors have of Nigeria, ultimately affecting the country's ability to attract foreign investments. Chidoka points out that Nigeria's population, often viewed as a strength, can also be a double-edged sword. While the country boasts a population of over 200 million people, a significant portion of the population lives below the poverty line, limiting the domestic market's effective demand. This, coupled with challenges like poor infrastructure and bureaucratic hurdles, adds to the complexities of doing business in Nigeria. To improve Nigeria's competitiveness, Chidoka advocates for a paradigm shift in the country's approach. He stresses the importance of reorienting all key stakeholders, including government officials, immigration authorities, customs agents, and banking institutions, on the crucial role they play in shaping investors' perceptions of Nigeria. Creating a conducive business environment and enhancing the ease of doing business are pivotal steps to attract investments. Moreover, Chidoka underscores the significance of government support for investors and the need for a transparent and secure investment climate. Citing the example of Kaduna State, where the government provided land to a conglomerate to facilitate a successful investment, Chidoka highlights the importance of partnerships between the public and private sectors in driving economic growth and fostering investor confidence. In a highly competitive global market, Nigeria cannot afford to rest on its laurels as the 'giant of Africa'. The emergence of other African countries as preferred investment destinations poses a challenge that Nigeria must address proactively. By prioritizing transparency, consistency, and investor protection, Nigeria can rebuild its reputation and regain its stature as a top investment hub in Africa. The time for change is now, and Nigeria must seize the opportunity to enhance its competitiveness and attract the much-needed foreign investments post-COVID-19.