Connect with us
nairametrics
UBA ads

Business News

Reactions trail Akin Alabi’s criticism of Nigerians abroad investing in the country 

Akin Alabi queried the decision of Nigerians in the diaspora to come to Nigeria to invest, then complain when their businesses fail. 

Published

on

Nigerians divided as Akin Alabi faults Nigerians abroad for investing in Nigeria 

Nigerians are divided over a statement made by the founder of NairaBet, Akin Alabi, which queried Nigerians in diaspora for leaving the ‘countries that work’ only to come to Nigeria to invest, then complain when their businesses fail.

Alabi, who is also a member of the House of Representatives, said he struggled to understand the motivation that would spur the Nigerians in Diaspora to establish a company in Nigeria. He questioned why they didn’t stay back to set up their businesses in a foreign country instead of investing in Nigeria where the system is not as dependable as the foreign countries.

UBA ADS

The ease of doing business in Nigeria has been heavily criticised. Apart from government regulations and policies that are viewed as harsh, the country lacks infrastructure and stable power supply. These negative factors affect the operating costs of companies and individuals who spend about $12 billion yearly to fuel generators. Also, in Nigeria, 80% of small and medium businesses fail in their first five years.

So, knowing how hostile the business environment is in Nigeria, someone like Akin Alabi cannot but ponder on the factor that drives Nigerians in Diaspora to make such business decision.

GTBank 728 x 90

Akin Alabi’s statement was trailed by various reactions from Nigerians. While his statement drew backlash from some Nigerians, others explained the motivating factors, narrowing it down to patriotism and better value.

Backlash from some Nigerians 

Alabi was condemned by some Nigerians for making such a statement. They said as a lawmaker, he was supposed to be apologetic that Nigeria does not have a conducive environment for businesses to thrive, not to be questioning the motive behind the decision of Nigerians abroad to invest in the country.

onebank728 x 90

 

 

app
GTBank 728 x 90

 

devland

 

app

https://twitter.com/vickdinho/status/1201419685075603456

[READ ALSO: Nigerians react as some Chicken Republic outlets go ‘out of stock for chicken’]

Some Nigerians explained that patriotism and opportunity drove them to invest in their country rather than invest in the ‘countries that work’.

 

For Joseph, it is cheaper workforce and poor regulation in Nigeria that made Nigerians in the diaspora invest in the country.

Meanwhile, Adebanji Ademola said the longing for home is the motivating factor.

[READ MORE: Nigerians react to Social Media Bill, mock lawmakers over similarity with Singapore]

 

Patricia

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Financial Services

Guinea Insurance Plc gives optimistic Q3 earnings forecast in spite of COVID-19

Note that some companies have had to revise their earnings estimates due to pandemic.

Published

on

Guinea Insurance Plc

Guinea Insurance Plc is being very optimistic, having projected a 78.6% rise in gross premium written to N1.8 in Q3 2020, up from N1 billion during the comparable period in 2019. The insurer also forecasted a profit after tax of N185.8 million for the period, indicating an expected better performance compared to N735 million loss recorded in Q3 2019.

The earnings forecast, which was sent to the Nigerian Stock Exchange earlier today, also estimated that reinsurance expense for Q3 will be at N337.5 million. Claims expenses, underwriting expenses, and other operating experiences were equally put at N331.3 million, N292.6 million, and N692.2 million, respectively.

UBA ADS

Note that this forecast is coming amid the negative economic impacts wrought by the Coronavirus pandemic. But while a growing list of companies (including Guinness Nigeria Plc) has downgraded their 2020 earnings and profitability forecasts, Guinea Insurance is expecting growth and that is good.

In Q1 2020, Guinea Insurance Plc reported gross premium written OF N207 million and a profit after tax of N12.6 million. The company’s consolidated half-year 2020 financial has not been released and is expected sometime between this month and next month.

The company’s share price ended today’s trading on the Nigerian Stock Exchange at N0.20. Year to date, this stock has not recorded any price movement.

GTBank 728 x 90

Patricia
Continue Reading

Economy & Politics

CBN unification of exchange rate a welcome development – MAN

Ahmed urged the CBN to tackle activities that made speculators manipulate the multiple exchange rates.

Published

on

CBN unification of exchange rate a welcome development-MAN

The President of the Manufacturers Association of Nigeria (MAN), Mr Mansur Ahmed, announced on Friday that the recent CBN unification of Nigeria’s exchange rate is a welcome development that will boost investor confidence in Nigeria.

He said the exchange rate unification will enable stable planned production for manufacturers in Nigeria leading to economic growth, adding that the Manufacturers Association had urged for an exchange rate unification to enable a market-friendly business environment in Nigeria.

UBA ADS

“Clearly, this is a welcome development and a laudable initiative that has come at the right time.”

“This is more so, particularly, now that the economic outlook is gloomy in light of the impact of the ravaging COVID-19 pandemic that has culminated in uninspiring macroeconomic situations,” he said.

He revealed that the World Bank had attributed Nigeria’s falling Foreign Direct Investment (FDI) to the multiple exchange rates as investors felt a “manipulation of the foreign exchange market.”

GTBank 728 x 90

“The unification will also boost investors’ confidence, control rising inflation, and promote transparency, entrench better exchange rate management and eradicate distortions to the barest minimum,” he added.

READ MORE: After hitting a 3-year low during the week, Naira stabilizes as traders wonder what next)

He urged the CBN to tackle activities that made speculators manipulate the multiple exchange rates like “round-tripping” which he says expand the inflows of foreign investment into the economy.

onebank728 x 90

He called on the Central Bank to implement 2 strategies to ensure a smooth transition into a unified exchange rate system.

“The first is to limit the short-term pains until efficiency gains materialize by responding swiftly with an inward-oriented rescue guideline while the second should seek to boost the pace at which such efficiency gains materialize,” he said.

He advised, it’s necessary the CBN “submit all the instruments of exchange rate determination” towards a free-market approach.

app
GTBank 728 x 90

 

Patricia
Continue Reading

Economy & Politics

Buhari appoints new Ag. Chairman of EFCC, gives reason for Magu’s suspension

The statement revealed why Ibrahim Magu, was suspended by the President.

Published

on

Ibrahim Magu

President Muhammadu Buhari has approved the appointment of Mohammed Umar as the new acting Chairman of the Economic and Financial Crime Commission (EFCC).

Umar who is EFCC’s Director of Operations was asked to take charge and oversee the operations and activities of the anti-corruption agency pending the conclusion of the ongoing investigation on the allegations against Ibrahim Magu and further directives in that regards.

UBA ADS

This was disclosed by the Special Assistant Media and Public Relations to the Attorney General of the Federation and Minister for Justice, Dr Umar Gwandu, in a press statement on Friday, July 10, 2020, in Abuja.

The statement revealed that the former acting Chairman for EFCC, Ibrahim Magu, was suspended by the President in order to allow for an unhindered probe by the Presidential Investigation Panel which is headed by Rtd Justice Ayo Salami under the Tribunal of Inquiry Act and other relevant laws.

The presidential panel was set up to investigate various cases of official misconduct and financial irregularities against Ibrahim Magu, who has been in detention since Monday, July 6, following his invitation for questioning by the panel.

GTBank 728 x 90

The allegations were made by the Attorney General and Minister for Justice, Abubakar Malami, who demanded for his removal as the acting Chairman of the EFFC in a memo to President Muhammadu Buhari.

Patricia
Continue Reading