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UAE targets Nigeria for multi-billion-dollar investments

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The United Arab Emirates has positioned Nigeria as a major destination for multi-billion-dollar investments spanning agriculture, technology, infrastructure, mining and trade, with the country’s Minister of Investment, Mohamed Alsuwaidi, admitting that Gulf capital is currently underexposed to Africa’s largest economy.

Alsuwaidi said this at the first Investopia Africa event held in Lagos on Monday, where discussions surrounded a wide range of opportunities that could translate into investments running from hundreds of millions to several billions of dollars, depending on sector readiness, regulatory clarity and the availability of credible local partners.

The PUNCH reports that as of 2025, trade relations between the UAE and Nigeria reached $4.3bn for non-oil commodities.

Speaking during a fireside chat with Nigeria’s Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, the UAE minister said, “Opportunities around agriculture. The UAE has big interests in companies like Louis-Dreyfus and Unigroup. So, investment in agricultural land is for the export of products. You know, that’s a couple of hundred million, maybe. I think investment around infrastructure, whether it’s in public transport, utilities, power, water or wastewater recycling, is crucial.

Again, it depends on legislation and opportunities. It could be in the tens of millions if I look at it from that perspective. I think in terms of connectivity and trade facilitation, whether it’s through capital or whether it’s through infrastructure like warehousing or others. A few billion there. I’m throwing out the billions here, just quantifying numbers in my head.

“I think the technology space is huge. We talked about smart metering, fibre-optic laying, small data centres, and cloud solutions. Again, in the billions. You can’t build a data centre for less than $100m today. Then mining. Again, huge opportunity. Requires a lot of infrastructure. I see a lot of opportunity.”

However, he cautioned that the pace at which investment commitments materialise would depend largely on information flow, market familiarity and the ability to identify reliable partners.

“Now, translating that is getting information, being able to find either a private sector or a government to be a partner with a government or private sector on my side,” he said. “Making sure that they have all the information to make the right decision.”

Alsuwaidi trashed the notion that trust was the primary barrier to deeper UAE–Nigeria investment ties, arguing instead that market understanding and partner identification were the real challenges.

“I don’t think trust is an issue. I do think understanding markets is an issue,” he said. “You’re not familiar with the market. You don’t know how to approach it. You don’t know who the partners are.”

He stressed that private-sector engagement would be central to unlocking deals, describing business-to-business interactions as more effective than government-led initiatives.

“I think there are more deals to be done at the private-sector level,” he said. “These events are the most crucial. Because you gather 300 people in a room. You exchange cards. You make some friends. And you have a good dinner. And that leads to a lot of money made with partners.”

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Earlier, the Chief Executive Officer of Investopia, Dr Jean Fares, described the UAE’s role as a global investment and trade hub capable of helping Nigerian producers, exporters and technology firms access markets across Asia, Europe and beyond through its logistics, digital and financial infrastructure.

“When you look at the UAE, its strong suit is the connectivity,” Fares said. “When you look at sea and air, with the carriers and with the ports; when you look at digital infrastructure, some of the fastest high-speed internet, the number of landing cables, the access to capital, and the access to data centres.”

He said the credibility of the UAE’s financial system and regulatory environment was a key attraction for investors.

“The financial services and the credibility of them that we built, both in DIFC and ADGM; the rule of law and the enforcement of that; and the protection of investors,” he said.

Fares added that the UAE had evolved beyond being a regional hub to becoming a global connector linking Africa with Asia and Europe.

“The UAE is becoming a dominant hub in the GCC, but also a connector of places like Africa to Asia and Asia to Africa and Europe,” he said. “If you’re trading with Asia, then you should have some kind of representation in the UAE.”

He noted that while the UAE continued to attract global capital, it was increasingly focused on deploying capital abroad, particularly in under-represented markets such as Nigeria.

“While we want to attract capital into the UAE, we’re also keen on moving capital out,” Fares said. “We’re very conscious that we’re underweighted in Nigeria. And we need your help to identify those opportunities where we can place short-term and long-term capital to grow.”

Oduwole, speaking with journalists after the fireside chat with her UAE counterpart, said, “So key businesses are here; you’ll be hearing from them all through the afternoon. It’s a short, crisp half-day event, and the afternoon is B2B. And then there’ll be follow-up meetings. There’s an Investopia session at the end of March in Abu Dhabi. And then there’s a session in Milan, which is focused on Africa. Nigeria is leading the charge. We’re already talking about it. We listened to the minister, my counterpart, the Minister of Investment from the UAE. He was actually pulling out ballpark figures of where he thinks solid minerals, critical rare earths, lithium, and tin are – areas where Nigeria is really ready to absorb that capital. So, we’ve assured them that we’re here for them. And this is what we’re going to be doing throughout this year.

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“You see the FMITI family behind me. We’re going to be bringing in key investors. We’re going to be pushing out our nano-exports across the region through the UAE as a hub. And so surely the best is yet to come. We are excited. The subnationals are involved.”

The role of states was highlighted, with Lagos State cited as a key example. Oduwole said, “This ministry is an enabler. We work with all arms and levels of government. We’re here today. Investopia has been hosted in Lagos State. It’s a federal thing; you know, a number of other state governments are represented. We put Governor Sanwo-Olu on the infrastructure panel to speak to the UAE audience. We cited the Lagos–Calabar Coastal Road. First Abu Dhabi, a UAE bank, was one of the first to put in capital. And we have the promise of all that the real estate down that corridor will become. So, you look at Abu Dhabi, you look at Dubai, and just imagine what that coast is going to look like in a few years.

“Sub-nationals: every business is domiciled in one state or city or another. And the way FMITI works, whether it’s from small businesses (you have SMEDAN) or from NEXIM, is they’re working across businesses all across the country. So that is what we do. That is who we are. And we’re ready.”

On tracking investment outcomes, officials said Nigeria relies on clear metrics to measure traction. These include public investment announcements, capital inflows recorded by the Central Bank of Nigeria, and data from the National Bureau of Statistics. They added that job creation figures and multiplier effects are also used to assess impact.

Infrastructure projects were cited as clear examples of measurable economic impact. Using the Lagos–Calabar Coastal Road as a case study, the minister said the project has already created livelihoods, generated informal economic activity, and demonstrated the tangible, quantifiable multiplier effect of construction and infrastructure spending.

Oduwole told the UAE minister and investors, “I’m glad to hear you say you’re ready to take the plunge and to deploy that capital. And you’re looking at the African region and Nigeria in particular.”

She assured investors of government support in structuring and executing deals: “We’re here for you. We’re here to take the capital. Every challenge is an opportunity. I’m committing personally on behalf of my president and on behalf of the private sector that we will facilitate these deals to make sure that they’re done properly.”

Lagos State Governor Babajide Sanwo-Olu, who sat on a panel discussion themed ‘Infrastructure and Logistics for Africa’s Next Phase of Trade’, said the state had focused on creating a secure, efficient and business-ready environment capable of absorbing large-scale investments.

“How do we ensure that the environment in which those investments are going to happen is safe and secure and has the ability to receive that capital?” Sanwo-Olu said. “We’re business-ready, we’re safety-ready, and we’re equipped.”

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He highlighted transport, digital and infrastructure projects undertaken to improve mobility and productivity.

“In the last four years, we’ve activated two rail projects. We’ve activated our waterways. Just two weeks ago, we signed a commitment with one of the telecoms that wants to do about 30,000 kilometres of fibre optics in Lagos,” he said.

Sanwo-Olu also noted that the state would soon be unveiling the Lagos International Financial Centre.

“We’ve had extensive conversations around the path of the Lagos International Financial Centre. The Lagos State government is cooperating with EnterpriseNGR. We started this journey about eight months ago. We still have about another eight months to go before finally unveiling it. But the beauty of it is the amount of global support that we have. It’s like we’re trying to put the Abu Dhabi Financial Centre and Dubai Financial Centre, or even the London Financial Centre, apart from the Lagos International Financial Centre. So that’s the level of audacity that we’re bringing.

“We’re trying to learn from all of these various regions to bring about a model that will be a true African model that will work for everyone, but it will also be a Nigerian model. So, I’m here to let you know that we are actually thinking global. We’re thinking about how to remain competitive, how to remain resilient, and how to be able to play on the same level of profit with other big cities and other big markets in the world. So, Lagos is positioning itself, leading the Nigerian competition, and we’re getting tremendous support from the federal government,” he said.

Also speaking, the Managing Director of the Nigerian Ports Authority, Abubakar Dantsoho, said Nigeria’s port infrastructure had not kept pace with its population and economic size but that reforms were underway.

“The biggest economy, with the highest population on every continent, has the biggest seaport,” Dantsoho said. “Nigeria is doing two million TEUs with over 250 million people.”

He said the Federal Government had approved major port modernisation projects to address the gap.

“The Federal Government has given approval for the port modernisation of Tin Can Island and Apapa Port,” he said. “In the near future, Nigerian seaports are going to be number one in Africa, which is where we naturally belong.”

The Investopia Africa event brought together senior government officials, investors and private-sector leaders from Nigeria and the UAE, with participants emphasising that sustained engagement, credible partnerships and project readiness would determine how quickly stated commitments translate into capital deployment.

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Nigerian states’ revenues rise 93%, but education spending drops — World Bank

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The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

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He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

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Nigeria promotes investment without building production capacity – UNILAG don

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A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

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Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

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Import waivers, insecurity end two-year agric trade surplus

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Import waivers meant to ease hunger and insecurity on farms have led to a deficit, ending a two-year run of surpluses, as Nigeria’s agricultural trade balance swung from a N740.27bn surplus in the first half of 2025 to a N56.13bn deficit in H1 2026, according to agriculture and trade experts.

Recent foreign trade data from the National Bureau of Statistics showed that agricultural exports fell by 33.28 per cent, or N985.14bn, to N1.98tn in H1 2026 from N2.96tn in H1 2025.

Agricultural imports fell by only 8.50 per cent, or N188.74bn, to N2.03tn from N2.22tn over the same period. The gap between the two movements produced a N796.40bn swing in the trade balance.

Nigeria recorded a N365.74bn deficit in H1 2023, when imports of N926.25bn far exceeded exports of N560.51bn. The balance then turned to a N194.92bn surplus in H1 2024 before it widened to N740.27bn in H1 2025.

In separate phone interviews with The PUNCH, Agribusiness experts, including the Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, Tunde Banjoko, explained that recent government policy led to the shift.

Banjoko said, “Some waivers were given for products like palm oil and rice, and the import tariffs were drastically reduced. It became more favourable for people to import than to patronise local producers.”

He said the waivers on food commodities hurt domestic producers, even though lower tariffs on tractors and manufacturing equipment helped them.

According to Banjoko, “The effect is that our imports will rise above our exports. Second, we will discourage local production. Thirdly, we will be reducing employment, because some factories will shut down if they are not able to compete.”

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Banjoko also said weak funding for processors compounds the problem. He said foreign direct investment flows mainly into the capital market rather than into production and processing, so local processors cannot scale.

He urged the Federal Government to speed up the Special Agro-Industrial Processing Zones programme. “We should speed up such projects where we can produce enough for our country and start exporting, not look for shortcuts by reducing prices,” Banjoko added.

Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, identified two major factors behind the deficit. He said the first was the Federal Government’s decision to allow some food imports to tackle runaway inflation.

Yusuf said, “The first is the decision of the government to allow for some food imports as a result of the challenges of food inflation, which at a point was getting almost completely out of hand.”

He added that insecurity worsened the supply gap and cut export capacity, stating, “Insecurity led many farmers to leave their farms. Many of them have ended up in IDP camps, and quite a number have completely abandoned farming.”

He added that farmers cannot export without output. Yusuf said, “You can only export when you have the output.”

Yusuf also said high input costs and falling produce prices have discouraged farming. He said, “Most of these inputs are imported, so the exchange rate situation has seriously affected the cost of inputs, and the prices of produce have gone down.”

He urged the Federal Government to cut the cost of fertiliser, agrochemicals, machinery and improved seedlings. He also called for a minimum guaranteed price for agricultural produce.

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Yusuf said, “The government can establish a threshold below which, if prices fall, it will give farmers some compensation. That is the way it is done in many other economies.”

Source: punchng.com

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