Last updated on September 5th, 2022 at 09:12 pm
The Godwin Emefiele-led apex bank announced Tuesday, September 14, 2021, that Nigerian International Financial Centre (NIFC) will be established as a measure to boost Foreign Direct Investments (FDI)
In July 2021, the National Bureau of Statistics (NBS) revealed that the total value of capital importation into Nigeria declined.
But the CBN said NIFC will be driven by technology and payment system infrastructure to ease the means of doing business in Nigeria.
The revelation was made by CBN governor Godwin Emefiele while speaking at the 14th annual banking and finance conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja.
“Central Bank, will, in the next 12 months be establishing the Nigerian International Financial Centre (NIFC). The NIFC will act as an international gateway for Capital and investments, driven by technology and payment system infrastructure,” Emefiele said.
What The NIFC will be doing
1) It will bring together local and foreign banks to create global champions
2) It will complement London, New York, and Singapore financial hubs
3) It will allow Nigerian efforts like Infracorp Plc, a N15 trillion infrastructure fund that will be formed in October 2021, to accelerate.
4) NIFC will complement CBN’s new digital currency project like e-Naira project scheduled for launch before the end of October 2021
5) It will also complement the Nigerian Commodity Exchange and the National Theatre’s creative hubs for Nigerian youths.
Emefiele pointed out that International Financial Centre will operate on the existing laws such as the BOFIA 2020 and other CBN regulations “to create a fully global investment and financial hub where monies, ideas, and technology will move freely without hindrance”
Foreign Investment In Nigeria:
Nigeria is behind Egypt and Ethiopia in terms of FDI, getting most of its investment from hydrocarbon, energy, and buildings among others, UNCTAD 2021 World Investment Report says.
The report reveals that FDI flows to Nigeria totaled USD 2.4 billion in 2020, an improvement from its 2019 performance which was USD 2.3 billion.
Our View
Considering the interest of foreign investors from technology-driven countries like China, the USA, the United Kingdom, France, and the Netherlands, we hope that the CBN’s NIFC project will help the country to create more jobs for its teeming youth.
