According to the spokesperson to the President of Nigeria, Ajuri Ngelale, Nigeria is considering joining the G20 group of major economies after evaluating the potential benefits against the potential risks. The G20 consists of 19 nations along with the European Union, and this year, India is serving as the group’s president. After South Africa, Nigeria might become the second country in Africa to join the group of the world’s most industrialised nations (G20) if it decides to do so. According to the World Bank, Nigeria has the largest economy in Africa.
Ngelale revealed that the government of Nigeria has begun extensive consultations with the goal of determining the advantages and risks associated with membership in the G20, even though membership in the G20 is desirable for Nigeria. The Nigerian government is now holding discussions before making a final decision. Bola Tinubu, the president of Nigeria, plans to fulfil the country’s long-term strategic goals by democratising foreign policy and implementing policy formulation using a “whole-of-society” and “whole-of-government” approach.
G20 is a strong economic power bloc that provides socioeconomic support.
South Africa is the only African nation that is currently in the G20 bloc of leading economies. Indian Prime Minister Narendra Modi extended a personal invitation to Tinubu to join him at the G20 Leaders’ Summit, which will take place in New Delhi beginning on September 9. The G20 is a strong economic power bloc that provides socioeconomic opportunity as well as geopolitical stability, according to the statement, since its members contribute up to 80% of global GDP, 75% of global commerce, and are home to 60% of the world’s population.
The president will participate in the Nigeria-India presidential discussion as well as the Nigeria-India business conference. He will use these events as an opportunity to attract international capital and advocate for higher foreign direct investments in key labour-intensive sectors of the Nigerian economy in order to generate revenue and create new jobs. A report stated that Nigeria also has plans to establish the Nigerian Solid Minerals Corporation, which will be supported by the state, with the goal of getting investments in the mining of minerals such as baryte, bitumen, iron ore, lead, coal, gold, and limestone.
Oil reliance will be reduced with increased revenue from mineral mining.
Dele Alake, Nigerian Minister of Solid Minerals, expressed in a statement that the proposed corporation would seek and secure partnership agreements for investments with large multinational companies globally to take advantage of the country’s appealing investment-friendly regime and bring in massive FDI for the mining sector. This step will help the country reduce its reliance on oil and increase revenue from mineral mining. Alake argues that the new company will partner with local financial institutions that have stopped investing in the mining industry due to the prolonged development time of the projects.
Moreover, the Nigerian president intends to highlight the potential for foreign direct investment in major labour intensive sectors while attracting global capital to increase revenue and job availability. The lack of investment, theft of crude oil, and vandalism of pipelines have all contributed to a decline in Nigeria’s oil production, which has had a negative impact on the country’s economy. Because of oil theft, the nation lost about 470,000 barrels of crude oil per day in September 2022, which had a monthly value of roughly $700 million (N529.86 billion).
Investment is needed in most African nations on its resources.
An analysis by the data analytics and consulting firm GlobalData revealed that African environmentalists have expressed worries that the continent’s oil, gas, and mineral-rich states could become caught in a net of having their assets become stranded. For nations like Nigeria, Senegal, Angola, Equatorial Guinea, and Mozambique to be able to monetise their resources and increase their revenue, their respective governments need to invest in those nations voluntarily. A separate analysis done by a coalition of UK and African equality and development activists, such as Global Justice Now, also suggested that the rest of the world benefits more from Africa’s wealth than most Africans do.