Obi challenges Okonjo-Iweala’s praise of Tinubu’s economic reforms, Cites alarming FDI drop

Peter Obi, Labour Party’s 2023 presidential candidate, has sharply criticized President Bola Tinubu’s economic policies, describing them as “uncoordinated” and “reactive,” despite recent praise from World Trade Organization Director-General, Dr. Ngozi Okonjo-Iweala.

Okonjo-Iweala had stated on Thursday that Nigeria’s economy was stabilizing under Tinubu, calling the administration’s reforms a step in the right direction. She made the remarks after a courtesy visit to the President at the State House.

However, in a statement on X (formerly Twitter) on Friday, Obi countered her position, citing fresh data from the National Bureau of Statistics (NBS) that paints a troubling picture of Nigeria’s economic trajectory.

“FDI to Nigeria declines amidst unending global galivanting and uncoordinated reforms,” Obi wrote. “While the President and top officials continue their travels in search of foreign direct investment, our poor performance in critical governance indicators—rule of law, regulatory quality, government effectiveness, and voice and accountability—shows that you cannot attract sustainable investment with weak leadership.”

Obi noted that Foreign Direct Investment into Nigeria dropped by nearly 70% in Q1 2025, falling to $126.29 million from $421.8 million in Q4 2024. He expressed concern that 90% of this capital went into short-term, speculative money market instruments with little impact on job creation or industrial development.

He further pointed out that capital inflows into Nigeria’s manufacturing sector fell by 32.1%, down to $129.92 million in Q1 2025 from $191.92 million in Q1 2023.

While global FDI flows dipped in 2024, Africa saw a significant increase, receiving $97 billion—a 75% rise compared to 2023. Egypt led the continent with $46.58 billion, followed by countries like Ethiopia, Côte d’Ivoire, Mozambique, Uganda, and others. Nigeria, by contrast, attracted just $1.08 billion, accounting for only about 1% of Africa’s total and representing a 42% decline from 2023.

Obi concluded by warning that the situation has worsened, with FDI into Nigeria dropping an additional 75% between Q4 2024 and Q1 2025.

“We cannot achieve sustainable growth and development with ineffective leadership and weak governance,” he stated.