At the Taraba International Investment Summit held on Wednesday in Jalingo, two of Nigeria’s most influential business tycoons, Tony Elumelu, chairman of the United Bank for Africa, and Aliko Dangote, president of the Dangote Group, underscored critical factors necessary to unlock Nigeria’s vast economic potential and attract both domestic and foreign investment.
The summit, organized by the Taraba State government, brought together investors from across Nigeria and beyond, with Vice President Kashim Shettima representing President Bola Tinubu, signaling the event’s national significance.
Elumelu, a prominent advocate for economic transformation through entrepreneurship, emphasized that reliable access to electricity, robust security, and a seamless business environment are non-negotiable prerequisites for attracting investment. “Improving access to electricity is so critical in attracting and supporting investments in the country.
His remarks come against the backdrop of Nigeria’s persistent power challenges, with frequent grid collapses and inadequate supply hampering industrial growth. According to industry reports, Nigeria’s electricity generation capacity hovers around 4,000–5,000 megawatts for a population of over 200 million, a stark contrast to countries like South Africa, which generates over 50,000 megawatts for a smaller population.
Security, another pillar Elumelu highlighted, remains a pressing concern. Nigeria has grappled with insurgencies, banditry, and kidnapping in various regions, deterring investors wary of operational risks. Elumelu’s call for improved security aligns with ongoing efforts by the federal government to address these challenges, though progress remains uneven.
The ease of doing business, Elumelu’s third point, touches on Nigeria’s bureaucratic hurdles, complex regulatory frameworks, and delays in judicial processes, which have historically frustrated investors. Nigeria’s ranking on the World Bank’s Ease of Doing Business Index has improved in recent years, climbing to 131 out of 190 countries in 2020, but significant gaps remain in areas like contract enforcement and property registration.
Elumelu, known for his Tony Elumelu Foundation’s support for young African entrepreneurs, passionately linked investment to youth empowerment. “The reason I love and preach investment everywhere I go is because it has many benefits, one of which is engaging the youths,” he said.
He described youth unemployment as “a betrayal of a generation,” noting that millions of Nigerian graduates struggle to find jobs, fueling social unrest and economic stagnation. Nigeria’s unemployment rate stood at 5.3% in Q1 2025, according to recent data, but underemployment and informal labor remain widespread, particularly among young people.
Elumelu’s advocacy for job creation through investment resonates with Nigeria’s demographic reality: over 60% of its population is under 25, representing both a challenge and an opportunity. By fostering an environment conducive to business, he argued, Nigeria can harness its youthful energy to drive economic growth.
Elumelu also praised the Bola Tinubu administration for achieving relative currency stability, a critical factor for investor confidence. Speaking about a recent discussion in Doha, he noted, “I commended the Federal Government of President Bola Tinubu that we have stability now, not that the rate is not high, but stability.”
Nigeria’s naira has faced significant volatility in recent years, with the exchange rate hovering around ₦1,600 to $1 in early 2025, down from over ₦1,900 at its peak in 2024. The Central Bank of Nigeria’s efforts to unify exchange rates and curb speculative trading have yielded some results, but Elumelu urged further action to lower the exchange rate, which remains a burden on businesses reliant on imports.
Complementing Elumelu’s remarks, Aliko Dangote, Africa’s richest man and head of the Dangote Group, stressed the importance of supporting local investors to catalyze economic development. “Domestic investors are the ones who will attract foreign investors,” Dangote asserted.
No foreign investors would come into a country where local businesses are not thriving. His comments highlight a critical dynamic: foreign direct investment (FDI) in Nigeria has been on a downward trend, dropping to $1.87 billion in 2024 from $3.3 billion in 2020, according to the National Bureau of Statistics. Dangote’s conglomerate, spanning cement, refining, and agriculture, exemplifies the potential of local investment to drive industrial growth and create jobs.
The Taraba International Investment Summit, attended by Vice President Kashim Shettima, showcased Taraba State’s ambition to position itself as an investment hub, leveraging its agricultural potential, mineral resources, and tourism opportunities.
The presence of high-profile figures like Elumelu and Dangote, alongside investors from across Nigeria and beyond, underscores the growing recognition of subnational efforts to drive economic growth in a country where state governments are increasingly taking the lead in investment promotion.
WHAT YOU SHOULD KNOW
The messages from Elumelu and Dangote at the summit reflect a broader consensus among Nigeria’s business elite: unlocking the country’s economic potential requires addressing structural bottlenecks while empowering local stakeholders.
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