LAGOS // Potential UAE investors in Nigeria are being reassured that the country remains open for business despite worries about security risks.
The message from business leaders in Nigeria comes as a number of Emirates executives prepare to visit to assess the investment climate in Africa's largest consumer market.
"Terrorism is an issue, but it's not as big an issue as people think, as with the right research and planning you can mitigate against risk," said Ken Igbokwe, the managing partner of PricewaterhouseCoopers Nigeria.
He pointed out that the violence was in isolated pockets, mainly in the north, while the rest of the country was stable.
A heavy focus on terrorism and other challenges facing Nigeria was not helping foreign perceptions of the country, said Olusegun Okunnu, a Nigerian economist and a member of a task force set up by the government to monitor oil revenue.
"Perception of Nigeria is key," he said. "A lot of the western media don't present the good side or opportunities."
With a population of about 160 million, vast oil wealth, cheap labour, and a rapidly emerging wealthy class, Nigeria has been rated as one of the most promising emerging markets.
But terrorism clouds its future.
The terror group Boko Haram has carried out a series of deadly attacks in the past two years. It said it was behind bombings of three churches last month in the state of Kaduna, attacks in which at least 50 people were killed.
Foreign investment will be harmed if terrorism is not curtailed, Baroness Chalker warned on Friday. She is the coordinator of the Honorary International Investors Council (HIIC), a group of foreign investors advising the Nigerian government.
A delegation of UAE businessmen including executives from the Sharjah-based conglomerate Mulk Holdings and Danube Building Materials plans to visit Nigeria after Ramadan.
Mulk Holdings, which has interests in solar-panel manufacturing, sees "immediate opportunities" in the renewable-energy industry in Nigeria, said the chairman, Shaji Ul Mulk. Solar technology offers a possibly cheaper power alternative than the country's current costly generators.
But Mr Mulk is mindful of potential risks. "The decision (to invest) will be based to a large part on a security point of view," he said.
Ties between the UAE and Nigeria are growing. Bilateral trade between Nigeria and Dubai swelled four times to about US$572 million (Dh2.1 billion) between 2005 and 2009, the latest period for which trade data is available.
Since then the flow of goods is believed to have risen further as Dubai services a growing chunk of the south-south trade between Asia and Africa. Significant amounts of that is bound for Nigeria.
Investment, however, has been less forthcoming. The telecommunications operator Etisalat's presence is perhaps the most high-profile business link between Nigeria and the UAE.
Mining and minerals, infrastructure and agriculture are among the "shopping list" of sectors into which Ibrahim Auwalu, Nigeria's new ambassador to the UAE, said he would like to tempt investors.
Nigeria needs much more foreign investment.
President Goodluck Jonathan's government is trying to push through reforms to find jobs for the estimated 24 per cent of the working age population that is out of work.
He is also attempting to tackle terrorism, sacking his national security adviser and defence minister after the latest bombings.
The heavy presence of army and police on the streets of the capital, Abuja, reflects the government's heightened sense of caution.
Nigeria is also trying to get to grips with a spate of oil bunkering - the theft of crude - as well as the long-running problem of corruption. If not addressed, bunkering could also deter investment, Baroness Chalker said last week.
But for those investors willing to take the plunge, the potential rewards are high.
"It's the wild west, but the market is also straightforward," said one South African businessman in Lagos. "If you make spoons, you can sell millions of them."
UAE businesses have to decide whether the rewards outweigh the risks.
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