Declining FDI Window to Develop Local Tech Startup, Says Expert
Omolabake Fasogbon
The federal government has been advised to see the dwindling foreign direct investment (FDI) in the country as a blessing in disguise and to explore the situation to boost local economy.
The latest capital importation report by the National Bureau of Statistics had revealed that FDI inflows in the country declined by 35.2 percent in the first quarter of 2024, a development likely to affect Nigeria’s $1 trillion economy target by 2030.
In the tech sector, the National Bureau of Statistics (NBS) had reported that FDI declined by a whopping 70.5 per cent in 2023.
Looking at the decline from another perspective, the Founder of Quomodo Systems Africa, Oluwole Asalu, in a briefing recently described the development as an opportunity to invest in home grown tech startups.
He submitted that recorded decline was not unconnected to factors as global economic uncertainties, fluctuating market conditions, and increased competition from other emerging markets.
He explained that growing the local talent required equipping them with resources and financial backup to enable them execute laudable ideas.
He added, “Beyond funding, local investment is about believing in our own capabilities and fostering an environment where Nigerian ingenuity can flourish. It’s about building an ecosystem where startups can thrive, supported by a network of investors, mentors, and industry leaders who understand the nuances of our market.”
As part of enabling local talent too, he identified a need for all to embrace homegrown tech products.
To this end, he challenged tech players and manufacturers to aim for quality and excellence in their produce, as to drive acceptability and achieve global competitiveness.
“Investing in and consuming Nigerian tech products is not just about economic growth; it’s about building a sustainable and self-reliant future. By reducing our dependence on imports, we can create a more resilient economy that is better equipped to weather global uncertainties.
“This self-reliance will also enable us to address our own challenges more effectively, leveraging local knowledge and expertise to develop solutions that work for us.
“The decline in foreign investment in Nigeria’s tech sector is a call to action. It’s an opportunity for us to take ownership of our future and build a thriving tech ecosystem that is driven by local investment, supported by Nigerian consumers, and competitive on the global stage.”
