Nigeria Says It’s Open for Business. But Is the World Ready to Believe?
When California’s delegation touched down in Lagos last week, the mood in the room was celebratory. The California-Africa Climate and Economic Partnership (CACEP) came face-to-face with Nigeria’s legal and business establishment, and the message from the hosts was unmistakable: the era of investor hesitation is over.
Speakers reeled off a list of reforms meant to signal Nigeria’s new seriousness: the amended Electricity Act opening doors to private players and renewable energy, the Company and Allied Matters Act (CAMA) modernising corporate governance, a retooled Nigerian Investment Promotion Act, and the Central Bank’s market liberalisation aimed at stabilising foreign exchange.
Add to that the Business Facilitation Act (2023), tax reforms with five-year incentives, a new Arbitration and Mediation Act, and a soon-to-be updated Solid Minerals Act—and the picture painted is of a country finally harmonising with global business standards.
But beneath the optimism lies a more complex reality: is Nigeria simply building a legal façade, or is it laying a foundation sturdy enough to sustain foreign capital, nurture its creative economy, and unlock long-term prosperity?
The Legal Reforms: Form vs Function
On paper, the reforms are hard to dismiss. Virtual AGMs, accelerated filings, transparent dispute resolution frameworks, VAT exemptions, and tax holidays—all resonate with the global investor’s playbook.
Yet, the elephant in the room remains implementation. Nigeria has a history of reform fatigue: progressive laws are passed but undercut by weak enforcement, shifting political priorities, and bureaucratic inertia. Investors are now asking a harder question: will the system function when tested under stress, or will it buckle under Nigeria’s old familiar problems—corruption, opacity, and unpredictability?
The California Angle: Why This Partnership Matters
California is not just another trading partner. It is the world’s fourth-largest economy and the capital of America’s entertainment industry. When Secretary of Transport Toks Omisakin and California’s Energy Secretary Noemi Gallardo speak about partnership, they are not only talking about oil, minerals, or climate change—they are eyeing Nigeria’s cultural capital and creative economy.
From Nollywood to Afrobeats, Nigeria already supplies much of the cultural raw material that fuels global entertainment. For California—the home of Hollywood and Silicon Valley—the prospect of aligning with Nigeria is both a cultural and economic bet. Climate-conscious collaboration, clean energy investment, and entertainment partnerships create a convergence that could, if managed well, anchor Nigeria more firmly in global value chains.
The Creative Economy: The Untold Subtext
One of the least spoken, yet most consequential, parts of this dialogue is Nigeria’s creative economy.
The Nigerian delegation spoke of electricity, forex, tax, and arbitration. California’s delegation spoke of film, culture, and technology ecosystems. This dissonance is telling. While Nigeria sees reforms primarily through the lens of industrial and financial investment, California recognises that the next big economic frontier may well be cultural.
UNESCO projects that Africa’s creative economy could generate 20 million jobs and $20 billion annually in the next decade. Nigeria—already Africa’s cultural powerhouse—is poised to capture a significant share of that growth. But only if its legal reforms extend beyond mining and energy to cover IP protection, licensing frameworks, streaming royalties, and creative-sector financing.
If Nigeria wants California’s investment, it must show not just that oil profits can be repatriated, but that filmmakers, musicians, game developers, and digital creators can protect their rights, monetise their work, and operate in a fair regulatory environment.
Numbers That Matter
The optimism is not unfounded. Nigeria’s macroeconomic signals are stabilising:
Market capitalisation has grown to ₦90 trillion.
Oil production is recovering at 1.55 mbps.
Foreign reserves stand at $37.94 billion.
Q1 2025 GDP growth hit 3.1%, outpacing the five-year average of 0.9%.
Financial services, ICT, and construction are among the top-performing sectors.
These metrics matter, but they tell only half the story. For investors in California—or anywhere else—the question is whether such numbers will translate into long-term confidence, not just short-term rebounds.
From Façade to Foundation
Nigeria’s pitch to CACEP was polished, but the real test is not in Lagos banquets—it’s in boardrooms in Los Angeles and Silicon Valley, where investors will weigh risks and returns.
For Nigeria to turn this courtship into lasting partnerships, it must:
Prove enforcement consistency – not just announce reforms but implement them transparently.
Prioritise the creative economy – by strengthening IP laws, royalty frameworks, and financing structures that make investment in culture as predictable as in cement or oil.
Signal climate-conscious seriousness – California’s interest in clean energy is not rhetorical. Nigeria must align reforms with sustainability to remain attractive.
Showcase success stories – one or two landmark foreign partnerships that deliver measurable results will do more for confidence than any number of reform announcements.
A New Era, Or Just Another Cycle?
Nigeria has always been a paradox: rich in promise, haunted by delivery gaps. The California partnership offers more than just capital—it offers validation from one of the world’s most innovative economies.
But validation must be earned. The future of Nigeria’s investment climate will not be decided by speeches, dinners, or reform bills. It will be decided in the daily transactions of investors, creators, and citizens navigating whether Nigeria’s new “ease of doing business” is real—or simply another layer of rhetoric.
For now, Nigeria says it is open for business. The world is watching to see if it truly means it.
A guest post by
A curious mind exploring the crossroads of creativity and insight.0