Extenuating political circumstances have foisted on Nigeria unprecedented dual-tracked capital and corporate flight. The development is linked to vagaries of Nigerian politics and governance difficulties. A grossly devalued Naira; trapped expatriate remittances -both personal and corporate- have resulted in the rapid outflow of assets or money and corporate exits. Unbridled import consumption habits, laggardly domestic production bereft of revenue earning exports and insecurity, have combined to create discernible uncertainties. Faux policies are creating dissembling concerns. Inflation rages on all fronts, especially cost of food & medicaments.
Rising inflation continue to impact negatively on Forex availability and purchasing power of Nigerians. Diaspora remittances, once a buffer, are halting and unrestrained governmental borrowings without adequate collaterals, continue to erode foreign and domestic investors’ confidence. With GSK gone, followed by Procter & Gamble (P&G) and Unilever’s partial disengagement, highbrow international grocers ShopRite is likely to follow. ShopRite has announced the shuttering of its Kano outlet. The heady question is which other cities will also experience shutdowns?
These unfurling developments ought to be troubling for Africa’s biggest economy that prides itself on its sustainable huge and emerging market. What is more troubling is Nigeria’s loss of the bragging rights that no MNCs ever lost their investments in Nigeria or ever exited. If the ruling APC government cannot practice fiscal discipline with agonizing cuts in cost of governance, things will get worse in Nigeria long before they ever get better. Now is the moment of truth.
Mr. Obaze is the former Secretary to the State Government of Anambra State, Nigeria from 2012 to 2015 - MD & CEO, Oseloka H. Obaze. Mr. Obaze also served as a former United Nations official, from 1991-2012, and as a former member of the Nigerian Diplomatic Service, from 1982-1991.
Selonnes Consult Ltd. is a Strategic Policy, Good Governance and Management Consulting Firm, founded by Mr. Oseloka H. Obaze who served as Secretary to Anambra State Government from 2012-2015; a United Nations official from 1991-2012 and a Nigerian Foreign Service Officer from 1982-1991.