Canvassing foreign direct investment (FDI) is a strategic economic policy engagement and a basic tool that could favourably enhance productivity in any economy, especially for poorer nations that are not industrialised, if international trade dynamics are reasonably considered. This transnational economic policy could be effectively utilised by forward-looking and promising economies to favourably exploit its opportunities for the advantages, benefits, gains; and efficiently cushion the impact of any occurrences of tariff wars, as currently being experienced among many international business partners of the United States of America (USA).
Using Botswana as an African nation that has done well in stabilising human capital development through very attractive packages of free education, human resources management, therefore, can practically not pose any obstacle or serious challenge in the nation’s economic growth and development. However, this economic trade policy on FDI may not be effectively achieved and efficiently realized if insecurity poses a problem within an economy; or if government support through investment promotions for ease of doing business is not put in place; and if a very attractive business environment — market’s demography and huge market size — is lacking.
The African Continental Free Trade Area (AfCFTA) is an ongoing continental trade policy amongst African countries, an agreement within the trade bloc. Going by its name, AfCFTA, the participating economies within the bloc enjoy free trade tariffs (as enshrined in their trade memorandum and agreement, with rules and regulations). It expressly involves restriction of imported goods from outside the trade bloc, which is controlled and monitored through trade tariffs in support of domestic industries (done as a trade policy of protectionism). For the African countries in general, and Nigeria’s economy in particular, FDI seems to be an effective international trade engagement tool that should be used in marketing prospective trade partners, to invest within the bloc and sustain a continuous seamless business relationship (without undue pause or any form of interruption). This strategy is what the economies of the trade bloc must embrace to attract investors to open up shops in the real sector. With the ongoing international trade wars of Trump’s import restriction and imposed tariffs, its imminent impact on any African economy could be significantly neutralised or brought to the barest minimum through the instrumentalities of the existing AfCTFA trade policy dynamics; once the FDI strategy is equally in place, operational and running within the bloc.
Nigeria, as a nation that is naturally and richly endowed with resources, and favourably disposed with very attractive potential to successfully compete in international trade — giving her huge market size within the Africa, relatively cheap labour, the low exchange rate of her currency — but still with the status of an import dependent economy, with an existing insatiable huge domestic consumer base, is a globally recognised and attractive trade hub. The government therefore, should redouble its efforts on investment promotions. This can be done by constantly engaging and marketing every prospective investor into the economy; providing undoubtable, resolute assurances; providing the needed adequate security in the land, as well as very stable economic policies that are not unduly disrupted with unnecessary irregular, unstable, and, often times, sudden trade policy summersaults.
The exchange of goods and services among countries is a phenomenal act of nature that every human and all global economies must engage in as part of maintaining the daily socioeconomic activities that cater for humankind’s three basic needs of food, shelter and clothes. This social order of legitimate means of livelihood in an economy presents in the records when reported in both the micro- and macroeconomic performances in every economy. This is often the case for the policy of protectionism; if the economy must be expected to grow, and actually achieve the anticipated economic development.
As Nigeria clocks 65 years (just a month away) on 1st October 2025; the big questions now come: “Is the government truly implementing and patriotically practicing this international trade policy of protectionism?” “Why is it that the Manufacturers Association of Nigeria (MAN) and the other groups in the organised private sector (OPS) are crying about unfavourable government policies, especially against the manufacturing sector?” “Is it not the duty of the government to truly apply this protectionism policy, and promote our domestic industries of Made-in-Nigeria goods, for national economic efficiency and growth — even if it is near impossible to restrict imports because this economy hasn’t adequate infrastructure that can sustain full blown local manufacturing?”
A successfully implemented protectionism policy that shields young and weak local industries would also contribute to the GDP of any nation. Energy supply alone will cripple the economic system if the authority ventures to upstage a full blown restriction of foreign made goods for imports into Nigeria’s economy, either through taxes and high tariffs. A simple case of subsidy on refined petroleum products alone has been terribly bastardized and turned into an economic arsenal to drain and run down the economy through corrupt practices. Nigeria, honestly, needs to change this subsisting narrative, for the economy to be on the right path to envious prosperity @65.
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