Nigeria can attract more UAE investments, economists say

Economists believe Nigeria possesses significant potential to draw investment from the United Arab Emirates (UAE) in various sectors such as energy, infrastructure, agriculture, ICT, real estate, and financial services. This was revealed as the UAE identified renewable energy, infrastructure, and digital innovation as key areas for long-term investment and sustainable development across Africa.

UAE's Minister of State, Saeed bin Mubarak Al Hajeri, emphasized the nation's strategic partnership in Africa's economic diversification agenda.

According to a recent report, Al Hajeri stated, "The UAE believes in the importance of building partnerships that are resilient, strategic, and aligned with long-term national priorities. In this context, the UAE sees its engagement and partnership across Africa as even more essential." UAE has invested approximately $71.32 billion in Sub-Saharan Africa between 2021 and 2025, with more than $70 billion allocated to renewable and green energy projects through programs like Masdar’s $10 billion initiative and the Etihad 7 platform.

Reacting to this, Dr. Muda Yusuf, CEO of the Centre for Promotion of Private Enterprise, suggested that the UAE's $71.32 billion investment in Sub-Saharan Africa could comprise a mix of foreign direct and portfolio investment, given that Nigeria's foreign direct investment (FDI) has increased, though not dramatically. Yusuf asserted that Nigeria could capture a larger share of future UAE investment by sustaining reforms in the oil and gas sector and enhancing foreign exchange liquidity, a crucial factor for foreign investors seeking the ease of moving funds in and out of the country.

Dr. Yusuf pointed out that Nigeria’s energy deficit presents a substantial opportunity for investors, particularly in renewable energy and power generation. "Energy is a major problem for us, just as it also presents a lot of opportunities. Because energy inadequacy is a very big problem here. And that means there are a lot of opportunities in that space as well. Particularly renewable energy and even other forms of energy supply. I’m talking of power now," Yusuf commented.

Furthermore, Nigeria offers potential in upstream and downstream oil and gas, agribusiness, ICT, real estate, infrastructure, and financial services. Yusuf highlighted the government's focus on attracting private investors in infrastructure projects, including roads, railways, and airport terminals. Professor Akpan Ekpo, a professor of economics and public policy, stressed the need for foreign investment in infrastructure and renewable energy to address Nigeria's development challenges and stimulate job creation.