KPMG, an audit, tax, and advisory firm, has emphasized the importance of creating an enabling policy framework and solid infrastructure to attract foreign investments in Nigeria. The Partner & Head of Transaction Services for KPMG West Africa, Mrs. Ijeoma Emezie-Ezigbo, made these remarks during a press conference where KPMG launched a report titled “Doing deals in Sub-Saharan Africa, SSA: Key insights from deal makers.”
Emezie-Ezigbo highlighted several key factors that can make Nigeria more attractive to foreign investors. She emphasized the need for an enabling environment and a supportive policy framework, citing the recent signing of the Petroleum Industry Act (PIA) as an example. However, she noted that full implementation of the PIA is still pending, and more needs to be done to create the right environment for the natural resource sector.
Security is another critical factor, especially in regions with substantial mining activities in Northern Nigeria. The absence of adequate security can deter potential investors. Additionally, the distribution and logistics network plays a vital role in attracting investment. Emezie-Ezigbo mentioned that 56% of investors expressed interest in companies with the right distribution and logistics network.
The report also highlighted West Africa’s active role in 2022, with a total deal value of $3.7 billion attributed to the sub-region, ranking it as the fourth-highest level in the past decade. This region also witnessed the second-highest deal volume on record, with 39 deals announced. More developed African markets are expected to benefit from this positive trend, with South Africa and Nigeria emerging as top destinations for future investment in Sub-Saharan Africa.
In conclusion, KPMG’s report underscores the importance of creating a conducive business environment, ensuring security, and developing essential infrastructure to attract foreign investment, ultimately promoting economic growth and development in Nigeria.