The Acting Executive Secretary of the Nigerian Investment Promotion Council, NIPC, Hajiya Ladi Katagum says poor electricity supply and other infrastructural challenges may disrupt efforts by the government to diversifying the economy from oil.
Katagum disclosed this to news men in an interview in Abuja, regretted that the infrastructural challenges faced in the country has blunted the nation’s investment appeal to investors.
According to her, “We have looked at all the indices for investment and Nigeria is lagging behind in most of them. First and foremost is the power supply challenge. You find some manufacturers devoting 40 per cent of their cost of production to power.
She further said, “So, before you even start producing, you have spent 40 per cent of your budget on power. The infrastructure is not there. The skills are not there. Everything for promoting a place as an investment destination is not there.
She added that another major challenge for businesses in nigeria is the issue of foreign exchange.
She said, “That is the single major impediment to doing business in Nigeria now. Most of them take loans and they borrow in dollars. If you borrowed one dollar at N150, now you are repaying at N350. With that, whatever you have done has totally gone. The other issue is infrastructure, particularly power. If power could be gotten right, 50 per cent of the problems are solved.”