Nigeria’s Consideration for G20 Membership and Economic Diversification

In a recent announcement, the Special Adviser to the President of Nigeria, Ajuri Ngelale, revealed that Nigeria is currently in the process of assessing the potential risks and benefits of joining the G20 bloc of major economies. The government is engaging in extensive consultations to thoroughly evaluate the implications of G20 membership before making a final decision.

President Bola Tinubu is committed to democratizing foreign policy and embracing a “whole-of-society” and “whole-of-government” approach to achieve the country’s long-term strategic objectives. These initiatives are part of Nigeria’s efforts to diversify its economy and attract foreign investments in key sectors to promote job creation and revenue expansion.

Indian Prime Minister Narendra Modi extended a special invitation to President Tinubu to attend the G20 Leaders’ Summit in New Delhi, underscoring the significance of Nigeria’s potential role in the global economic landscape. The G20 represents a substantial economic power bloc, accounting for a significant portion of global GDP, international trade, and the world’s population.

President Tinubu is set to participate in the Nigeria-India presidential roundtable and Nigeria-India business conference at the summit. These platforms will be used to showcase foreign direct investment opportunities in labour-intensive sectors and attract global capital to foster economic growth in Nigeria.

Furthermore, Nigeria is planning to establish the Nigerian Solid Minerals Corporation to facilitate investments in mineral extraction, including baryte, bitumen, coal, gold, iron ore, lead, and limestone. This initiative is part of the country’s strategy to diversify its economy beyond oil and attract foreign investments to expand its mineral extraction sector.

According to Nigeria’s Minister of Solid Minerals, Dele Alake, the corporation will seek partnership investment agreements with multinational companies to leverage the country’s investment-friendly regime and secure substantial foreign direct investment for the mining sector. This move aims to reinvigorate the mining sector and collaborate with local financial institutions to drive sustainable growth in the industry.

Nigeria has witnessed a decline in oil production, resulting from underinvestment, crude oil theft, and pipeline vandalism, leading to significant revenue losses. As a response, the country is focused on attracting global investments to revitalize its economy and create employment opportunities.

The proactive approach taken by Nigeria aligns with the recommendations of GlobalData, which emphasized the importance of voluntary investments in African states to monetize their resources and expand their revenues. This approach is essential to prevent the potential risk of stranded assets in the oil, gas, and mineral-rich states in Africa.

As Nigeria continues its deliberations on G20 membership, it remains committed to fostering economic diversification and attracting foreign investments to drive sustainable growth and resilience in its economy.