By Udeme Ekwere

The former Prime Minister of the Republic of Ireland, Mr. Bertie Ahern, has commended the ongoing restructuring in the Nigerian banking sector.

According to him, proper regulation in the banking sub-sector will attract more Foreign Direct Investment into the country.

Ahern was quoted in a statement from the Oxford Business Group on Thursday, as saying that ensuring banks were well regulated and operating in line with best international standards could prove to be a major key in capturing the interest of foreign investors.

According to him, policies that are transparent and consistent could hold the key to Nigeria’s economic development and boost its efforts to attract foreign investment.

He said, “Sound policies provided the building blocks for Ireland’s economic transformation during the 1990s, helping it to successfully tap FDIs in high value segments and build its Gross Domestic Product. We had to ensure that the needed infrastructure was in place for companies to expand, complemented by sensible investment policies.

“I think that Nigeria has to make concerted efforts towards building a strong track record with the World Bank and the IMF, as this would also help build confidence abroad. I think that the growing presence of global firms in Nigeria is already helping to generate confidence among world business leaders.

“Investors are now looking for transparent business policies and a proper legal structure and there are signs that this is under way, with international legal and accountancy companies helping to drive greater transparency.”

He noted that it was important that Nigeria learnt some lessons from other developed and developing foreign counterparts, adding that there was the need to spread risks by growing the economy across the sectors.

“As can be seen from the current precarious state of Ireland’s financial sector, the importance of economic diversity is huge. Over-exposure to any sector should not be taken lightly, as was seen when construction in Ireland accounted for over 15 per cent of GDP at the height of the boom,” he noted.

With Nigeria’s economic development gaining pace, Ahern highlighted the importance of ensuring that the country’s 36 states were given the opportunity to promote their individual strengths under the umbrella of a national investment framework.

He stated, “In large countries, it is important for each region to focus on its assets and abilities as a platform for development and expansion.

“The central government must decide what type of stimulus each region can benefit from and select economic and social policy points that will suit the region.”

He also added that Public-Private Partnerships could play a key role in bringing the private sector to the centre stage in Nigeria’s economic expansion, particularly with the country’s plans to drive forward a number of major infrastructural projects.

Source: Punch