A new report from the Private Equity and Venture Capital Association of Nigeria (PEVCA) warns that President Tinubu’s recent policies could discourage investment in the country.
The report, part of PEVCA’s 2024 midyear review, criticizes the administration’s approach, noting that conflicting policy goals may deter both local and foreign investors.
PEVCA highlights the administration’s short-term revenue strategies as a key concern, arguing that these measures undermine efforts to create a business-friendly environment.
The report points to specific policies, such as the proposed expatriate levy and cybersecurity levy, as examples of initiatives that could create a challenging climate for businesses.
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Additionally, PEVCA notes the continued lack of leadership in key government agencies, following President Tinubu’s dissolution of statutory bodies in June 2023, which has stalled economic activity.
While the administration has introduced significant reforms in the energy and foreign exchange markets, PEVCA warns that these changes, implemented swiftly after Tinubu took office, have led to rising inflation and a volatile exchange rate.
The report also highlights the government’s proposal to amend the Finance Act to impose a windfall tax on banks’ foreign exchange gains, which the National Assembly has increased to 70%