According to renowned economist Ayo Teriba, CEO of Lagos-based Economic Associates, the federal government must draw in at least $50 billion in foreign direct investment (FDI) in order to keep inflation to 5% by 2025.
According to Teriba, who spoke on an Arise TV program on Wednesday, the country’s macroeconomic conditions might start to improve once its net reserves grow as well.

The economist’s claim is made in light of President Bola Tinubu’s goal of bringing inflation down to 15% by the end of the year. Numerous economists have questioned the viability, pointing to challenges from rising food and fuel costs.

He clarified that sufficient capital inflows and substantial foreign reserves will stabilize the exchange rate and lower inflation, which has increased to a 28-year high.

He clarified that sufficient capital inflows and substantial foreign reserves will stabilize the exchange rate and cause inflation, which has reached a 28-year high of 34.6% in November, to sharply decline to a single digit.

The economist maintained that the government needed to enact drastic changes to draw in significant foreign direct investment (FDI), which would revolutionize the economy that is suffering from a number of problems.

Inflation could reach 5% in the upcoming year. Take a look at Argentina’s events. Instead of making predictions, economists make conditional assertions, according to Teriba.

“Exchange rates will stabilize and inflation will fall to single digits if the president can combine his work on tax and finance reforms with an investment act to draw $50 billion in foreign direct investment within the next year.”

Nigeria’s third quarter of 2024 saw a 248 percent increase in foreign direct investments (FDIs) to $103.82 million, but this amount is still insufficient to spur the growth required to revive the investment-starved economy.

FDI, which includes equity and capital required for long-term economic development, increased from $119 million in the first three months of the year to $29.8 million in Q2, the lowest amount ever recorded.

However, Teriba claimed that the current economic policies, especially those pertaining to debt servicing, make it more difficult for the government to accomplish

Nigeria’s low credit rating is the main reason why foreign creditors charge some of the highest interest rates in the world. Because of this, borrowing is not a viable long-term strategy, according to Teriba.

Teriba called for a move away from debt and toward equity-based funding, criticizing the government’s present borrowing policies.

He pointed out that because they issue higher-grade debt instruments, several nations with economies similar to Nigeria’s are able to borrow at substantially cheaper rates.

“Despite their claims that they would not borrow, they have done so. There are efficient and inefficient ways to borrow, as well as right and wrong ways.

“The quality of the debt instruments you issue is the main concern. Some countries of equal economic stature borrow more heavily than we do yet at a third