President Bola Tinubu of Nigeria has been invited to the G20 summit, a gathering of some of the most developed countries in the world, taking place in India. This invitation presents numerous opportunities for Nigeria in the changing global economic landscape, particularly in relation to the controversial BRICS dimension. Additionally, Nigeria’s leading position in Africa and its relationship with South Africa, Egypt, Morocco, Algeria and other countries on the continent, will play a crucial role in determining the country’s future cooperation and rivalry with these nations, and establishing its strategic position in International affairs, as it relates to Africa
The G20 summit provides the Bola Tinubu’s government with a platform to engage with the world’s leading economies and showcase its potential as a key player in the global economic order, especially with the emergence of the new government in Abuja. The president will be accompanied to the summit by a team of about 38-man top Nigerian businessmen, women, and government officials and Ministers.
It is crucial to ensure that the trip will ignite the attraction of Foreign Direct Investment into Nigeria, in multiple economic sectors. The government must assure the members of the G-20 that Nigeria is now open for business. The trip should send out the right signal that the country is ready for business. Global investors are like shoppers, who are perpetually looking for the best markets for their investments.
Nigerians expect that the invitation of the country to the summit will explore the opportunities that arise from Nigeria’s participation in the G20, the implications of the BRICS dimension, and the dynamics of Nigeria’s relationship with South Africa, Egypt, Morocco, and Algeria, on one hand and those of the members of the G-20 on the other.
There are clearly no sentiments when it comes to investments decisions and where businesses flow into. Investment destinations are solely influenced by enabling environments which guaranty safety and return on investment.
Importantly, the following are some of the developments that economists and analysts would want to see emanate from Nigeria’s participation in the summit:
Economic Opportunities:
Nigeria’s participation in the G20 presents significant economic opportunities for the country. As one of the largest economies in Africa, Nigeria can attract foreign direct investment, forge new trade partnerships, and enhance its economic growth. The summit provides a platform for President Tinubu to highlight Nigeria’s potential as an investment destination, particularly in sectors such as power, renewables, oil and gas, agriculture, marine and blue economy, and technology. By engaging with developed countries, Nigeria can learn from their experiences and adopt best practices to further strengthen its economy.
BRICS Dimension:
The BRICS (Brazil, Russia, India, China, and South Africa) countries have emerged as major players in the global economy. Nigeria’s participation in the G20 alongside these nations offers an opportunity to explore potential collaborations and partnerships. Nigeria, with its vast natural resources and growing consumer market, can benefit from trade and investment ties with the Bretton Woods institutions and BRICS countries. Additionally, Nigeria’s membership in the African Union and the leading country in the ECOWAS subregion positions it as a gateway for the G-20 nations to access the African market, creating mutually beneficial economic relationships.
Leading Position in Africa:
Nigeria’s leading position in Africa gives it a unique advantage in the global economic world order. As the continent’s most populous nation and still the largest economy, Nigeria has the potential to drive economic growth and development across Africa. By participating in the G20, Nigeria can advocate for African interests, promote regional integration, and attract investments that benefit the entire continent. This leading position also allows Nigeria to collaborate with other African nations, such as South Africa, Egypt, Kenya, Cote D’Ivoire, Morocco, and Algeria, to address common challenges and pursue shared economic goals.
Rivalry and Cooperation:
While Nigeria’s relationship with South Africa, Egypt, Morocco, and Algeria may involve elements of rivalry, it also presents opportunities for cooperation and collaboration. Nigeria still remains a major supplier of crude oil to South Africa and some of these other countries in G20 and BRICS. These countries, like Nigeria, have significant economic potential and play crucial roles in their respective regions. By fostering cooperation, Nigeria can leverage the strengths of these nations to drive economic growth, enhance regional stability, and address common challenges such as infrastructure development, security, and trade barriers. However, healthy competition can also spur innovation and drive economic reforms, benefiting all countries involved.
In essence, President Bola Tinubu’s invitation to the G20 summit in India provides Nigeria with a unique opportunity, correct the poor economic and security environment of the country in the past decade and to showcase its potential and readiness for enabling environment for business to thrive in the new global economic world order. By engaging with developed countries in the G20 nations, Nigeria can attract investments, forge new trade partnerships, and drive economic growth.
Nigeria’s leading position in Africa, with some of the initiatives of the government by the harmonization of the multiple foreign exchange rates and the removal of the corruption- laden fuel subsidy, further strengthens its role as a key player in the continent’s development. While rivalry and cooperation with South Africa, Egypt, Morocco, and Algeria may exist, collaboration among these nations can lead to shared economic prosperity and regional stability. Nigeria must seize this opportunity to position itself as a major player in the changing global economic landscape. This is a unique opportunity for President Tinubu and his team to make a clear and unambiguous statement, that Nigeria is now open to the entire investment world to come and invest.
NB: Sonny Iroche, 2022-2023 Senior Academic Fellow, African Studies Centre of the University of Oxford. He is also an Investment Banker of 30 years experience. He was an Executive Director of the Transmission Company of Nigeria (TCN), 2013-2017)
Twitter (X): @IrocheSonny
