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US says Nigeria lacks macroeconomic framework to attract dollar denominated foreign investment



The US Deputy Secretary of Treasury, Wally Adeyemo, has said Nigeria lacks the macroeconomic framework to attract more dollar denominated foreign direct investments into its economy.

Adeyemo noted that the government needs to develop a macroeconomic framework that demonstrates its commitment to the fundamentals and this will in turn help attract foreign investors to the country and help the country’s economy thrive.

This was made known by Adeyemo while speaking at the Lagos Business School (LBS) at a forum with business leaders in Lagos on Monday, September 18, 2023.

Adeyemo, who spoke on the US-Nigeria Economic Relationship, praised the early steps taken by the government in terms of the fiscal policy and unification of the exchange rate.

The US top official stated that more needs to be done, noting that as companies around the world become more comfortable with the approach of Nigeria, the country would be destination for Foreign Direct Investment (FDI).

Responding to a question about investments and the Nigerian economy from the audience, Adeyemo said,

The Deputy Secretary said the proposed reforms by the Nigerian government will not have bring quick solutions because things have been difficult economically over the past few years due to COVID, the Russian-Ukraine war, and a confusing exchange rate policy.

According to him, America is bullish on Nigeria because of its people, adding that the recently introduced reforms in Nigeria were long overdue.

He said the US had made it clear to the Nigerian government that it wanted to partner in the implementation of the reforms.

He noted that United States is one of the largest foreign investors in Nigeria, with the country being the US’s second-largest African trading partner. He stated that the US government provided Nigeria with over $1 billion assistance in 2022, to support Nigerians with access to health care and reduce food insecurity.