The United States deputy treasury secretary, Adewale “Wally” Adeyemo, has expressed the willingness of the Biden administration to assist Nigeria in taking critical steps to sustain the foreign investments of Africa’s largest economy. Speaking at the Lagos Business School (LBS), Adeyemo discussed the necessary measures for creating economic opportunities for the Nigerian people. He highlighted the need for Nigeria to invest in digital infrastructure, improve macroeconomics, and provide a conducive economic environment to attract foreign investments.
A stable naira and unifying Nigeria’s foreign exchange rate were among the key factors Adeyemo emphasized as essential for macroeconomic stability. He commended the Nigerian government’s efforts in achieving these goals, emphasizing the importance of not regressing. Adeyemo also urged the government to implement a credible fiscal strategy that would generate resources for critical investments.
Adeyemo recognized the difficulties faced Nigerian households due to the decision to end fuel subsidies. However, he stressed the necessity of using the resources from these subsidy cuts to invest in physical and digital infrastructure, education, and small businesses, particularly in the agricultural sector. He emphasized that addressing issues such as access to fertilizers, technology, water, land, and credit, as well as reducing market entry costs, would unlock the full potential of the agricultural industry.
Corruption and its perception in the Nigerian business environment were identified as significant obstacles to attracting investors. Adeyemo underscored the importance of rooting out corruption and ensuring accountability to alleviate these concerns. Implementing digitization initiatives in government functions, such as business license and visa applications, would also improve productivity and reduce opportunities for corruption.
Protecting the integrity of Nigeria’s financial system was another priority highlighted Adeyemo. By enhancing the security of the banking system, Nigeria can prevent criminals, terrorists, and others from illicitly using the financial system.
Adeyemo commended President Bola Tinubu’s leadership and expressed the commitment of the US government to collaborate with the Financial Action Task Force in addressing money laundering and terrorist financing in Nigeria. He assured that the US government is ready to support Nigeria in taking the necessary steps to sustain economic growth.
Title: The US Offers Support to Nigeria in Sustaining Foreign Investments
– Naira: The currency of Nigeria.
– Macroeconomics: The branch of economics that studies the behavior and performance of an economy as a whole.
– Foreign exchange rate: The rate at which one currency can be exchanged for another.
– Fiscal strategy: A plan for managing government revenue, expenditure, and debt to achieve desired economic outcomes.
– Digital infrastructure: The technology and systems that support digital communication, including networks, data centers, and internet connectivity.
– Business climate: The overall environment in which businesses operate, including factors such as regulations, stability, and corruption perception.
– Money laundering: The process of making illegally-gained proceeds appear legal disguising their source.
– Financial Action Task Force: An intergovernmental organization that sets standards and promotes effective implementation of legal, regulatory, and operational measures to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system.
– Lagos Business School (LBS)
– Pan Atlantic University (PAU)