Lagos — More foreign investors may dump Nigeria for neighbouring countries in the next couple of months as the harsh operating environment occasioned by unstable power supply, policy inconsistency and insecurity, among others, continue to scare investors, LEADERSHIP learnt.
South African-owned Shoprite has disclosed it is relocating from Nigeria, while Twitter is setting up its African office in Ghana, in a move that may force other foreign investors to join the bandwagon.
Shoprite ranks as the biggest shopping mall in Nigeria with outlets in every major city across the country. Reuters reported yesterday that a Nigerian property company will be taking over Shoprite's local business in Nigeria. Shoprite, with more than 2,300 stores across Africa, is awaiting regulatory approval on the sale.
Experts said until the federal government and relevant stakeholders resolve some of the bottlenecks limiting business survival, more investors will leave the shores of the country to somewhere else where the business operating environment is favourable.
To head, Retail Investment at Chapel Hill Denham, Ayodeji Ebo, to win back the trust of investors and companies there is the need for government to create enabling environment.
"They need to tackle insecurity in the country and create an enabling environment that includes protecting companies, both foreign and local companies.
"There should be reduced policy inconsistencies and we also need to create incentive for companies to come in. Recent statistics have shown that long term investments have been dwindling and we need them to create employment in the country.