By ISRAEL LAR & YVONNE ISHOLA
As Nigeria marks 65 years of nationhood, the spotlight once again turns to one of the key pillars of its economic development—foreign investment. From the colonial era to the present, foreign investment has played a defining role in shaping Nigeria’s economy, from oil exploration to telecommunications and digital innovation. In a recent engagement with journalists, Governor Caleb Mutfwang of Plateau State outlined practical steps his administration is taking to attract and sustain foreign investment in the state, particularly through agricultural modernisation, technology integration and the creation of an investor-friendly environment.
Historical overview of foreign investment in Nigeria
Foreign investment in Nigeria dates back to the colonial era (1914–1960), primarily driven by British colonial interests focused on extractive industries such as mining and agriculture. In Plateau State, the British concentrated on tin mining, leaving behind numerous mine ponds that, to this day, continue to pose a threat to lives.
In the post-independence era (1960s–1980s), the discovery of oil in the 1950s attracted massive foreign investment, particularly in the oil and gas sector. Nigeria experienced what was popularly known as the global oil boom.
The United States became a major investor, especially in oil and gas, while the United Kingdom retained its strong historical and economic ties with Nigeria. In recent decades, China has emerged as a key player, investing heavily in infrastructure projects such as roads, railways and power plants.
Key sectors attracting foreign investment include oil and gas, telecommunications, agriculture, and the digital economy. Telecommunications companies such as MTN, which became a household name during the Olusegun Obasanjo administration, have expanded Nigeria’s digital reach. Agriculture has also seen renewed attention, aided by the First Lady, Senator Oluremi Tinubu’s advocacy for women to maintain backyard gardens, reducing household costs and improving nutrition.
Foreign investment remains crucial because it bridges the savings-investment gap, introduces new technologies, creates jobs, improves infrastructure, enhances global competitiveness and supports economic diversification.
Milestones, challenges, decline in investment
Over the years, several events have boosted foreign investment in Nigeria. The Structural Adjustment Programme (SAP) of 1986 opened the economy to foreign inflows, particularly in oil, manufacturing, and telecommunications. Nigeria’s return to democracy in 1999 and subsequent economic reforms further expanded the investment landscape.
Significant milestones include Shell’s oil discovery in Oloibiri (1956), the establishment of the Nigerian Investment Promotion Commission (NIPC) in 1995, and Nigeria’s membership in global investment institutions such as the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID).
Despite these gains, Nigeria continues to face numerous challenges that deter investors. These include infrastructural deficits such as poor power supply and transportation networks, corruption, bureaucratic bottlenecks, policy instability, security threats and foreign exchange shortages. Taxation issues, local content restrictions and lack of transparency further compound investor hesitancy.
As a result, Nigeria recorded a 19% decline in foreign direct investment (FDI) in the first quarter of 2025, highlighting the urgency for policy stability, improved infrastructure and enhanced security.
Plateau state’s drive for foreign investment
At a recent parley with journalists, Plateau State Governor Caleb Mutfwang outlined initiatives designed to make the state more attractive to foreign investors. These include:
Revamping Agriculture: Modernising agriculture through irrigation and mechanisation to ensure food security and economic sustainability.
Transforming Livestock Production: Revitalising the Jos Abattoir and promoting livestock production as a major revenue source and potential hub for beef exportation.
Creating an Investor-Friendly Environment: Ensuring peace, stability and regulatory efficiency to encourage business growth.
Collaborating with International Organisations: Partnering with the World Bank and the Federal Government to implement the Livestock Productivity and Resilience Support Project (L-PRES).
Leveraging Technology: Applying digital solutions to improve data management in agriculture, health and tourism while positioning Plateau as a medical tourism hub.
Diaspora Engagement: Partnering with the Plateau State Association USA and other diaspora groups to attract direct investment and foster development.
One of the government’s most innovative steps is the establishment of the Plateau One-Stop Shop—a hub bringing together key government agencies such as the Corporate Affairs Commission (CAC), Standards Organisation of Nigeria (SON), National Agency for Food and Drug Administration and Control (NAFDAC) and the Federal Inland Revenue Service (FIRS). Managed by the Plateau State Micro-Finance Development Agency (PLASMEDA), this initiative simplifies business registration and regulatory compliance, reducing bureaucracy and encouraging both local and foreign investors.
The One-Stop Shop forms part of the nationwide MSME Clinics initiative launched by the Presidency in 2017 to spur local production and boost Nigeria’s export potential.
Security: The lingering obstacle
While Plateau has enormous investment potential, security remains a critical concern.
“Plateau has everything that foreign investors want and much more, but the only challenge is security,” said Mr Sabi. “The enemies of the state have worked hard to stain its perfect profile.”
He advised the government to deploy advanced technology to monitor and prevent attacks by bandits and unknown gunmen, ensuring that perpetrators face the full wrath of the law to serve as a deterrent.
Similarly, residents such as Mrs Anya, Mallam Shehu, and Albarka Silas believe that “the merchants of crisis are among us,” insisting that internal collaborators help external aggressors wreak havoc on communities.
Governor Mutfwang himself expressed disappointment that some Plateau citizens had allegedly betrayed their people by aiding attackers. He, however, expressed faith that such saboteurs would soon be exposed, declaring that Plateau would once again reclaim its rightful place as the “Home of Peace and Tourism.”
As Nigeria celebrates 65 years of nationhood, its future economic strength lies in ensuring that foreign investment becomes not only an avenue for profit but also a vehicle for sustainable growth, stability and equity. Plateau State’s proactive steps—if supported by robust national policies—could serve as a model for other states in repositioning Nigeria as Africa’s premier investment destination.