With Qatar’s sovereign wealth fund at almost $500bn, Nigeria – which is in dire need of foreign direct investment to shore up its currency – is hoping the Gulf nation will throw some money its way.
Just weeks after Egypt secured $35bn from the UAE, Nigeria also sought to strike gold with Qatar, offering the Gulf nation investment opportunities in lithium mining, gas development, sports and tourism.
With a delegation of around 50 people, including members of his cabinet and the organised private sector, President Bola Tinubu had just one message when he visited Doha last month: come and invest in Nigeria.
The president, while pleading with the Gulf nation to invest, asked Qatari authorities to report to him any Nigerian government official demanding a bribe.
“There is nowhere in the world where you will find a return on investment at the level of what you will see in Nigeria. A massive market of over 200 million skilled Nigerians, always industrious and ready to work,” Tinubu told Sheikh Tamim bin Hamad Al Thani, his Qatari counterpart.
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The Qatari Emir, however, told Tinubu that Qatar’s sovereign wealth fund did not belong to him but to its citizens, and that the country must thus be careful before committing money abroad.
“The investments we have made around the world have been very fruitful. This is because we take our time and study opportunities before we invest the common wealth of our people. It is not my money. The money we invest belongs to the future generations of Qatar,” he said, promising to send a team of officials to Nigeria after Eid al-Fitr for further discussions on investment opportunities.
Nigeria needs Qatar’s expertise
Dele Alake, Nigeria’s solid minerals minister, made a presentation on the country’s huge lithium deposits and Nigeria’s readiness to exploit them in the face of the high demand for lithium. The Nigerian delegation also sought Qatar’s assistance in developing its gas potential, which remains largely untapped.
The discussion culminated in the signing of seven memorandums of understanding, including a cooperation agreement in the field of education; the establishment of a joint business council between the countries; and a cooperation agreement in the youth, sports and tourism sectors.
Failed promises
This is not the first time Nigeria is courting Qatar for investments. Tinubu’s predecessor, Muhammadu Buhari, visited Doha in 2016 in search of investments. Qatar’s emir reciprocated the gesture when he visited Abuja in 2019.
Buhari seized the opportunity, saying: “We invite you to invest in our refineries, pipelines, power sector, aviation, agriculture, education and many others. Nigeria needs Qatar’s expertise.”
In 2021, then-foreign minister Geoffrey Onyeama said Nigeria was in advanced talks with Qatar to invest $5bn in Nigeria.
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However, the discussions did not culminate in any notable investment except for Qatar increasing its humanitarian efforts in the restive Kaduna and Borno states.
“Qatari are in several countries. They are in South Africa and Rwanda but not in Nigeria,” Nigeria’s foreign minister Yusuf Tuggar remarked on the sidelines of the recent visit.
Qatar’s initial response to Tinubu’s visit was somewhat hostile and the proposed meeting between the leaders was almost cancelled.
In a leaked letter signed by Qatari authorities a week before Tinubu’s proposed visit, the Arab country said the planned business and investment forum would not be feasible due to the lack of a legally binding agreement between Qatar and Nigeria to promote investment.
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Qatar further stressed that its commerce and industry minister, Sheikh Mohammed bin Hamad bin Qassim al-Thani, “will be carrying out official missions outside the country during the visit period” which makes him unavailable to meet with the Nigerian side for business and investment purposes.
However, Nigerian officials hurriedly pulled strings to save the administration from embarrassment and ensured the Qatar visit was not cancelled. Nigeria quickly established a joint business council with Qatar through which investments would flow.
Will Qatar invest?
Egypt, also facing economic challenges, received a huge boost after securing $35bn investments from the UAE to develop a prime stretch of its Mediterranean coast. The deal with one of Abu Dhabi’s sovereign investment funds is for the development of the Ras El Hekma peninsula and could eventually attract as much as $150bn in investment, according to Egypt.
However, Qatar is not expected to make a similar investment in Nigeria due to Qatar’s investment style, says economist Majid Dahiru.
The Qatar Investment Authority has a massive portfolio invested in thriving businesses, mainly in the West. The small Gulf country of fewer than three million people is notable for purchasing French football club Paris Saint-Germain in 2011. It also bought Harrods department store in London, formerly owned by Egyptian businessman Mohamed Al-Fayed.
