₦airaland Forum

ACQUISITION OF THRIVING INDIGENOUS BUSINESSES BY WESTERN BEHEMOTHS: HIT OR MISS TO NIGERIAN ECONOMY?

Considering neocolonialism tendencies, unrestricted acquisition of established and thriving indigenous businesses by foreign organisations may not entirely be to the advantage of Nigeria, or any developing country for that matter.

When our thriving fintechs in Nigeria were acquired by foreign organisations, I wasn’t as elated as many others. These companies were already doing well and scaling gradually. Give it time; they would even grow bigger. But foreign investors saw something already built and thriving, and they moved quickly to acquire it. The result? Profits and dividends that should have remained in Nigeria for reinvestment and consumption are now being repatriated abroad.

I do not oppose factor payments to foreign stakeholders. I also do not resist foreign investors expanding in Nigeria. My concern is the clear disequilibrium, because what flows into our country is far less than what constantly flows out.

The fact is, we need regulation and prioritisation. Foreign capital should be channelled into underdeveloped and latent sectors of our economy, and such should be accompanied by technology transfer, technical know-how, and fresh capital that is unavailable locally. That is the kind of investment that would genuinely benefit us.

As far back as when I was a little boy, I had known that major economic powers of the world are protectionist at home and mercantilist abroad (pressuring other countries, especially developing countries, to transfer value to them while keeping theirs tight at home).

— Sam Tayo

You're speaking from both sides of the mouth

If you build your own business, you can decide on where to source capital for expansion on the basis of what works best for you and your sector.

I doubt if you know that for the past few years and till date, the largest non oil forex earner for our country is an indigenous company that started in Ode Omu, Osun state in 1948. It's still a family business till date. It's not even Dangote!

MNC left, you people wailed. MNC came back you are still waiting.

Please go and build your own formidable business first and let's have this convo again.

Talk is cheap o

FreeStuffsNG:
You're speaking from both sides of the mouth

If you build your own business, you can decide on where to source capital for expansion on the basis of what works best for you and your sector.

I doubt if you know that for the past few years and till date, the largest non oil forex earner for our country is an indigenous company that started in Ode Omu, Osun state in 1948. It's still a family business till date. It's not even Dangote!

MNC left, you people wailed. MNC came back you are still waiting.

Please go and build your own formidable business first and let's have this convo again.

Talk is cheap o

You didn't understand a thing in what I posted. You responded like a bot, speaking not to the issue.

By the way, you don't have to understand everything.