Vice President Kashim Shettima has presented Nigeria’s $200 billion opportunity in the energy transition sector to global investors, underscoring the critical role of strategic partnerships to fully harness the diverse and substantial investment prospects nationwide.
He emphasized that Nigeria’s sovereign credit ratings from agencies such as Fitch and Moody’s position the country as the ideal gateway to the African Continental Free Trade Area’s (AfCFTA) expansive $3.4 trillion market.
Seizing this platform, Shettima invited international investors to explore the sweeping economic reforms underway in Nigeria, driven by President Bola Tinubu’s Renewed Hope Agenda, which aims to reset and revitalize the nation’s economy.
In a statement delivered by his spokesperson, Stanley Nkwocha, the Vice President spoke at a Business Council for International Understanding (BCIU) Roundtable titled “Risk, Reform, Return,” held alongside the 80th United Nations General Assembly (UNGA) session in New York City.
Representing President Tinubu at UNGA80, Shettima stressed that in today’s globally connected world, national prosperity is neither accidental nor inherited but earned through deliberate action and innovation.
He highlighted Nigeria’s status as West Africa’s largest economy and Africa’s biggest consumer market, with a population of 236 million projected to reach 320 million by 2040, making it a demographic powerhouse.
Beyond sheer numbers, Shettima pointed out Nigeria’s youthful demographic, with a median age of 17 and over 58% under 30, representing one of the world’s most vibrant talent reservoirs.
“Couple this with our strategic location bridging Africa, the Americas, and Asia; our wealth of 44 unique natural resources; five tech unicorns; Africa’s largest oil reserves; and proven gas reserves totaling 210 trillion cubic feet, and it’s clear that Nigeria is a force to reckon with,” he remarked.
The Vice President outlined the bold economic reset initiated since mid-2023 under President Tinubu’s leadership, including the harmonization of exchange rates, elimination of long-standing fuel subsidies that distorted the economy, modernization of tax and customs systems, enhanced fiscal governance, and comprehensive reforms in trade and investment policies.
He elaborated, “This transformation encompasses full AfCFTA implementation, deployment of a National Single Window for trade facilitation, enactment of a new Investment and Securities Act, an upgraded Public-Private Partnership framework, and refreshed bilateral investment treaties.”
Shettima noted tangible outcomes: accelerating GDP growth, bolstered foreign reserves, easing inflation, and a resurgence in investor confidence and commitments.
Highlighting Nigeria’s improved economic standing, he recalled Fitch’s upgrade of Nigeria’s sovereign rating to B with a stable outlook and Moody’s elevation to B3, both citing stronger fiscal buffers and clearer policy direction as key factors.
“These upgrades affirm Nigeria’s role as the natural hub for the AfCFTA’s $3.4 trillion market,” he added.
To attract and safeguard investments, Nigeria has introduced a four-pillar incentive framework aimed at mitigating risks, expediting returns, and positioning the country as a top destination for capital in the Global South.
“Our streamlined tax system now offers transparent capital allowances, R&D deductions, and export-linked rebates. Priority sectors benefit from accelerated breakeven through 5% annual tax credits on qualifying capital expenditures,” Shettima explained.
He also highlighted benefits within Nigeria’s Special Economic Zones, including duty-free imports, rent discounts, rebates on non-oil export revenues, and integrated logistics solutions that enhance working capital for exporters.
“Investor protections have been strengthened through updated bilateral treaties, promotion and protection agreements, clear repatriation mechanisms, and simplified foreign exchange access, ensuring capital and profits are secure,” he assured.
Shettima further described how Special Agro-Industrial Zones are revolutionizing agriculture by cutting post-harvest losses by up to 40% and connecting farmers directly to processing and export centers, transforming Nigeria into a continental-scale food system serving millions across West Africa.
On the energy front, he revealed, “With 210 trillion cubic feet of gas reserves and some of Africa’s highest solar irradiation levels, Nigeria presents a $200 billion opportunity in the energy transition.”
Fiscal incentives and VAT exemptions are de-risking investments across traditional and renewable energy projects, from gas-powered independent plants to off-grid solar and clean hydrogen initiatives.
Addressing infrastructure gaps, Shettima acknowledged a $1 billion annual shortfall in transport, ports, and power but highlighted government efforts through InfraCorp and the Nigeria Sovereign Investment Authority to blend sovereign and private capital for projects like metro lines, dry ports, and industrial corridors-laying the foundation for West African trade and generating sustainable investor returns.
“Special Economic Zone clusters now boast over $5 billion in installed industrial capacity, with backward integration incentives and AfCFTA corridors unlocking a multi-billion-dollar continental market,” he added.
These reforms are positioning Nigeria as Africa’s manufacturing hub and innovation center.
Shettima also noted Nigeria’s vast mineral wealth, with 44 commercially viable minerals valued at over $700 billion under a new beneficiation and security framework.
“Investors have early access to critical resources like lithium, gold, bitumen, and rare earth elements essential for the global green economy,” he said.
He highlighted Nigeria’s digital economy, which accounts for 29% of Africa’s internet usage, has attracted over $2 billion in venture capital, and is cultivating three million new tech professionals.
This makes Nigeria the continent’s fastest-growing digital hub, excelling in fintech, artificial intelligence, cloud computing, and broadband expansion.
“Our creative sector, currently a $15 billion industry, is projected to soar to $100 billion by 2030,” Shettima added.
Nigeria’s entertainment industry-including Nollywood, Afrobeats, gaming, animation, and fashion-is flourishing under policies that protect intellectual property and foster creative clusters, cementing the country’s status as a cultural powerhouse in the Global South.
He also emphasized healthcare’s growth, an $18 billion sector supported by executive orders promoting local manufacturing, a $1.57 billion World Bank primary healthcare initiative, and specialist centers developed by the Nigeria Sovereign Investment Authority.
Earlier, Minister of Industry, Trade and Investment Dr. Olajumoke Oduwole reiterated that since May 2023, Nigeria has undertaken one of its most ambitious economic overhauls under President Tinubu’s Renewed Hope Agenda, including exchange rate unification, fuel subsidy removal, tax and customs modernization, and enhanced fiscal oversight.
She noted the comprehensive overhaul of trade and investment policies, including full AfCFTA implementation, the National Single Window Project, a new Investment and Securities Act, an upgraded PPP framework, and modernized bilateral investment treaties.
Oduwole pointed out that these reforms have already yielded positive results: accelerating GDP growth, stronger external reserves, moderating inflation, and renewed investor interest.
“In April, Fitch upgraded Nigeria’s sovereign rating to B with a stable outlook, and Moody’s raised its issuer rating to B3, also stable,” she said.
“These improvements reflect enhanced fiscal buffers and clear policy direction, fueling over $50 billion in investment interest and announcements across key sectors,” the Minister added.
On the same day, Vice President Shettima, representing President Tinubu, attended the High-Level meeting marking the 80th anniversary of the United Nations General Assembly at the UN Headquarters.
President Tinubu delivered a brief address celebrating the UN’s enduring legacy of peace, human dignity, and sustainable development.
Shettima was accompanied by Kaduna State Governor Senator Uba Sani; Minister for Solid Minerals Development Dele Alake; Minister for Arts, Culture and Creative Economy Hannatu Musa Musawa; Women Affairs Minister Iman Suleiman-Ibrahim; and officials from the Nigerian Mission in New York.
