“It’s difficult for investors to have confidence in Nigeria” – Federal Palace Hotel investors moan as exit nears
Federal Palace Hotel investors may have confirmed many economic and financial experts’ fears that the clampdown on MTN by the Central Bank of Nigeria and the Federal Government could have implications on the economy.
CBN has been hounding MTN over alleged illegal repatriation of over $8 billion as well as $2 billion tax, but the telecommunications company maintains it hasn’t breached any of the country’s financial laws.
Many experts who have weighed in on the ongoing saga are of the opinion that the FG and CBN may be more tactful in handling the issue with the country’s largest network provider, so as not to send the wrong message to other potential investors.
South Africa’s Sun International, which bought a 49 percent stake in the Tourist Company of Nigeria (TCN) in 2006, has said it is preparing to exit the Nigerian market, as many companies were facing problems doing business with the country.
The company also accused Nigeria’s SEC of appointing two directors after the board of the TCN, which operates the 5-star Federal Palace Hotel in Lagos, was reconstituted.
In his reaction to the move, Sun International Chief Executive Officer, Anthony Leeming, said: “The property is sought after given its location so there are potential buyers but Nigeria has been volatile for a while.
“It starts becoming difficult for investors to have confidence,” Leeming is quoted by Reuters to have said about some of Nigeria’s investment policies.
Experts have said at a time when the country is looking to bounce back from an economy slump, a badly strained relationship with investors does not bode well for its progress.
