A lecturer from the Department of Political Science, University of Lagos, Dr Isiaka Adams, has said that full implementation of the nation’s local content laws by the Federal and State Governments will attract much more Foreign Direct Investments.
“Our top two tiers need to drive full realisation of our Local Content Policy because such will attract more foreign direct investment (FDI) instead.”
Adams said that fears over drastic reduction in FDI inflow as a result of the policy ware misplaced.
He added that the FDI in the service sector, more than other business arenas, was likely to triple with a conscious effort to achieve the objectives of Nigeria’s local content laws.
“More foreign companies in the business of consultancy, providing training and services are likely to see Nigeria as a haven for business if our local content laws are applied to the letter.
“Nigeria too will gain overtime from these service sector companies in the area of knowledge transfer because we stand to get more understanding of global best practices in providing services.
“Also, our citizens will become engaged in skill cum knowledge acquisition, earn income and by implication generate income to grow our Gross Domestic Product (GDP) ratio.
“This recent drive towards local content policy application is one move in the right direction,’’ he said.
Mohammadu Buhari-led Federal Government early in the year signed an Executive Order designed to reinforce the adoption and implementation of local content policies in key sectors of the Nigerian economy.
The Federal Government at various forums had said that the adherence to the nation’s local content policies would address the problem of unemployment and income generation in the country.
Adams said that the policy was likely to discourage capital flight out of the Nigerian economy eventually.
He added that Nigeria was long overdue to be exporting its indigenous knowledge systems, technologies and practices to advance the local economy.
“We should by now be a global player in the business of marketing our local contents, practices, knowledge and systems.’’