Russian-Ukraine drama, an opportunity?
By Olugbenga Ajiboye.
Until the ISIL started making headlines on major media, the top headlines were scored by the Crimea crisis involving Russia, Ukraine, the EU and the US.
It is well known that economic sanctions were levelled against Russia from the West, with Russia retaliating by also banning western food imports. All this drama very much like something out of a Jack Ryan novel. Oh well, the sanctions did not hurt Russia enough to de-escalate the situation, rather it seems Russia is using the opportunity to explore other emerging markets in the world, namely Latin America, India and China.
But what does this mean for Nigeria?
The Nigerian Private sector is one that seriously relies on Foreign Direct Investments, and has lately been well celebrated in the world as the 2nd highest growing economy amongst developing nations averaging 7.8% of growth per annum (prior to rebasing).
There's been a lot of constraits by the EU and the US on Russian investors, causing investors, to move capital away from these zones, which are currently experiencing growth rates not higher than 3% in the US and far less in the EU.
Given that the average investor enjoys more money than less money, it is viable to say, Nigeria can take advantage of this economic standoff, and get some funding needed to drive growth and innovation, yes, from the Russians.
Before you reel and pelt me with your remarks, remember that Hollywood certainly makes the world look more colorful.
So as it is, Nigeria can attract Russian funding. There are some issues to this though.
1. Russians funding Nigerian startups may send the wrong diplomatic messages to the west, our allies.
2. The risk of investing (possible loss) in a country where there are viable security threats is present.
However, if we would attract funding without attracting flak, a smart Russian would use a Chinese company to invest in Nigeria. Is that Criminal? I'm not entirely sure...
P.S: Tomorrow The Savvy Nigerian will be releasing an article on the 10 rules of surviving a Zombie Apocalypse. And it will remind you nothing of Zombieland (2013). I kid you not!
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