FG’s Economic Promises: Foreign Investors Pledge Billions in Investments, Will Nigeria See Real Impact in 2024?

Despite facing significant economic challenges and grappling with a record-high inflation rate, President Bola Tinubu’s administration has secured several positive economic deals and investments in 2023. These deals, totaling billions of dollars, are expected to have a significant impact on Nigeria’s economic outlook for 2024.

Here are the top five major deals signed by the federal government in 2023:

1. Saudi Arabia’s FX and Refinery Rehabilitation Pledges:
   During President Tinubu’s investment trips in 2023, Saudi Arabia pledged to assist Nigeria with its foreign exchange (FX) obligations and invest in the rehabilitation of the country’s refineries. This move is expected to boost Nigeria’s FX liquidity and infrastructural development in 2024.
2. TotalEnergies Deal with NNPCL:
   French energy company TotalEnergies entered into a partnership with the Nigerian National Petroleum Corporation Limited (NNPCL) to conduct methane detection and measurement campaigns using advanced drone-based technology. TotalEnergies also pledged to invest $6 billion in offshore oil projects and gas production in Nigeria, which is expected to revolutionize the oil and gas sector and create employment opportunities.
3. I-Dice Deal with France:
   The federal government secured a $116 million investment from the French government to boost the digital and entrepreneurship sector in Nigeria. This investment aims to create job opportunities in the digital and creative economy, leveraging Nigeria’s youthful population and expanding the tax net.
4. Siemens Energy Deal to Increase Grid Capacity:
   During the COP28 Summit in Dubai, Nigeria signed the Presidential Power Initiative agreement with Siemens Energy to inject 12,000 Megawatts of electricity into the national grid. This initiative is part of the government’s efforts to attract more foreign direct investment (FDI) in the energy sector.
5. Germany’s $500 Million Renewable Energy Deal with Nigeria:
   Nigeria signed a $500 million renewable energy deal with Germany, aiming to harness investment in renewable energy projects across the country, particularly in rural communities. Additionally, a gas export partnership was agreed upon, with Nigeria set to supply natural gas to Germany, reducing gas flaring.

These deals signify potential foreign investment inflows into Nigeria, offering hope for economic growth and development in the coming years.

Source: Nairametrics