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| Dangote Calls for Local Investment |
Aliko Dangote, Africa’s richest man, spoke plainly this week. He urged the nation’s affluent to stop parking fortunes abroad. He said investing at home is the only way to create jobs, shore up industry, and secure the future of unborn generations. His appeal cut through jargon. He made one firm point: no country lifts itself without capital flowing into real projects here.
Dangote laid out a stark choice. He pointed to nations with graft. Yet their elites pump stolen funds into domestic ventures. That moves economies forward. In Nigeria, wealth too often leaves local banks. It lies idle overseas. Dangote rejected excuses. He said corruption exists everywhere. But real change happens when funds meet factories, roads, and schools at home.
His comments came in a private briefing with select journalists on July 16, 2025. He spoke against a backdrop of stalled growth in foreign direct investment (FDI). In the first half of 2024, portfolio investors returned after policy shifts. That lifted total capital imports to $5.98 billion. Yet FDI sank below 1.2 percent of that total in mid-year.
National Bureau of Statistics data shows FDI at just $119.18 million in Q1 2024. That figure plunged to $29.83 million in Q2. Those sums made up barely 3.5 percent and 1.15 percent of total capital imports, respectively. In simple terms, long-term investors shy away. They fear exchange-rate swings and uncertain policy.
By Q3 2024, FDI had ticked up to $103.82 million. Still, it remains among the lowest inflows seen since 2013. Experts blame deep naira devaluations and steep borrowing costs. Such hurdles chase away the major funds Nigeria needs to expand factories and modernise infrastructure.
Dangote did more than cite data. He offered personal proof. His $20 billion oil refinery near Lagos stands as a testament to bold local bets. He began it a decade ago despite weak state support and supply limits. Today, that refinery nears full scale. It could process 650,000 barrels of crude daily, surpassing national demand by 150 percent.
He said his gamble shows how private drive wins. He called on peers to back projects across agriculture, power, and transport. He argued such moves would lure further investment. Every new plant or port upgrade proves stability and profit. That sparks fresh bets from abroad. He stressed: “If we keep riches beyond our shores, nothing grows here.”
What stands in the way? Dangote noted three main fears among local investors. First, policy whiplash. Regulations shift with political winds, he warned. Second, currency risk. Businesses must convert naira to dollars for key imports. That cranks up costs when rates swing. Third, slow courts and red tape. Lengthy approvals and murky land titles deter even seasoned backers.
Analysts agree. Dr. Obinna Nwankwo, an economist at the Nigerian Economic Summit Group, says policy gaps must close. He points to the 2025 Fiscal Plan as a step forward. The government aims to ease foreign exchange rules and boost credit for manufacturers. But he cautions that plans must translate into clear rules at the central bank and ministries.
On its part, the Central Bank of Nigeria has hiked rates five times this year. It freed the naira to trade without strict caps. Those moves lifted total capital inflows to nearly $6 billion in early 2024. Portfolio investors snapped up high-yield treasury bills at rates north of 24 percent. Yet long-term FDI remains stuck. Officials say they will automate forex trades late this year to improve transparency.
Beyond macro fixes, Dangote urged peer philanthropy to shift. He asked wealthy Nigerians to convert part of charity funds into venture capital. He said social impact investments could yield both profit and social returns. He cited his own Dangote Foundation endowment of $1.25 billion. It spurred health and education schemes at home and abroad. Now he wants similar stakes in tech hubs, agro-processing parks, and green energy plants.
Critics say caution is wise. Ms. Aisha Bello, a Lagos-based fund manager, warns that public and private sectors must share risk. She notes that long-term projects in power and manufacturing can take years to break even. Without partial state guarantees or co-investment, she says few backers will sign on. She urges a framework to insure housing and industrial builds against expropriation and delays.
Even so, Dangote countered that boldness pays off. He recounted how he weathered a decade of legal battles to claim land for his refinery. He said each court victory reinforced investor faith. He cited his cement plants in Benin and Ghana as examples. They drew local suppliers and created 10,000 jobs each. He said regional wins build trust and show what home capital can achieve.
Data from CEIC shows Nigeria’s FDI as a share of GDP rose to just 1.3 percent in Q3 2024. That level sits well below peer economies. In Morocco, FDI reached 3.5 percent of GDP over the same period. Kenya logged 2.1 percent. Those nations attract funds with clearer legal rules and faster dispute resolution.
Dangote’s argument also taps national pride. He reminded listeners that Nigeria boasts Africa’s largest economy by output. It holds vast oil reserves, farmland spanning the Sahel to the Niger Delta, and a youthful workforce of 220 million. A fraction of domestic wealth could trigger an industrial boom. He said: “Our potential lies under our roofs and in our pockets.”
He appealed directly to his peers. He said that each billionaire and multi-millionaire should nominate one local project to fund fully. That could mean backing a solar-power plant or upgrading a grain mill. He insisted private sector leaders must step up when state funding falls short. He challenged professional bodies, like the Nigerian Bar Association and the Chartered Institute of Bankers, to lead by example.
His speech won praise from some corners. President Tinubu’s office issued a brief statement welcoming the call. The presidency said it would work to streamline approvals for projects backed by domestic investors. The Minister of Industry promised to fast-track permits for those committing at least $50 million locally.
Still, obstacles remain substantial. Transparency International ranks Nigeria 148 out of 180 countries on its corruption index. That score can dissuade both local and foreign investors. Surveys by the World Bank find local firms pay 20 percent of project costs in unofficial levies. Experts say tackling graft in customs and licensing would unlock vast sums.
To some wealthy Nigerians, Dangote’s plea strikes a chord. Mr. Femi Otedola, a fellow tycoon, declared on social media that he would earmark $100 million for agro-processing. Ms. Folorunsho Alakija pledged to reinvest dividends from her oil-services firm into local vocational training. Those public pledges drive momentum and spark broader debate.
Grassroots investors also see promise. Mr. Chijioke Umeh, who runs a cocoa processing plant in Ondo State, said he plans to expand after securing a $10 million loan from a local syndicate. He said domestic backers understand his market better than foreign funders. He added that local capital carries goodwill—but it needs clear collateral rules.
Experts say the next steps lie in policy. They urge the Federal Government to enshrine key pledges in law. That could mean a Sovereign Fund Act giving tax breaks and guarantees to local investors. They also call for a Land Title Registry to speed up property claims. They note that such measures boosted investment in Rwanda and Ghana.
Meanwhile, think tanks propose an “Invest Nigeria” platform. It would match domestic wealth with vetted projects, backed by partial state guarantees. It could use a transparent online portal for bids and contracts. That setup proved successful under Nigeria’s 2005-2010 power reforms, when local funds co-financed grid upgrades.
In closing, Dangote stressed that today’s choices shape tomorrow’s reality. He said: “Our children will ask what we did with our wealth. We can gift them roads, factories, and schools—or we can send our money abroad to earn pennies. The choice is ours.” His words fell on a gathering of Nigeria’s richest—and on a nation hungry for growth.