OPS identifies sectors to attract more UAE investments

Nigerian business leaders in the Organised Private Sector have identified port decongestion, logistics, and economic zones as key sectors that could benefit from increased investment by the United Arab Emirates, urging the country to convert growing interest into long-term investments in productive sectors.

The UAE has expressed interest in investing in Nigeria through public statements and government engagements, including a recent visit by the Special Adviser to the Governor of Enugu State on Investment Strategy and Public Relations, Humphrey Onyima, to the Embassy of the United Arab Emirates in Abuja to establish an Enugu State-UAE Investment Corridor.

In August, The PUNCH reported that Nigeria’s capital importation from the Gulf nation rose by 87.8 per cent to $728.81m in 2025, up from $388.01m in 2024, according to the National Bureau of Statistics.

The UAE also reported investing $71.32bn in Sub-Saharan Africa between 2021 and 2025.

In separate phone interviews with The PUNCH, organised private sector leaders said the biggest impact of the UAE’s investment drive could be in ports, logistics and economic zones, while manufacturing, renewable energy, agriculture and agro-processing also offer opportunities.

The First Deputy President of the Abuja Chamber of Commerce and Industry, Prof. Adesoji Adesugba, said the UAE’s experience in port management could benefit Nigeria, where congestion and poor inland logistics increase business costs.

“I see the biggest impact in ports, logistics and economic zones. The UAE built much of its prosperity on Jebel Ali, and companies like DP World and AD Ports Group already operate across Africa. Nigeria’s port congestion and poor inland logistics add cost to almost everything we produce and consume, so serious investment there would be felt across the whole economy,” he said.

Adesugba identified Nigeria’s free trade zones as a potential entry point for Gulf investors. He described them as the “obvious entry point, because they already offer the incentives and the faster setup that Gulf investors are used to.”

However, he cautioned against judging the investment prospects solely by the increase in capital importation, stressing the need to examine the nature of the inflows.

“The 87.8 per cent rise is encouraging, but I would look closely at what sits behind the number. Capital importation data from the NBS is usually dominated by portfolio flows and loans, and that kind of money leaves as quickly as it arrives once the exchange rate or interest rates move. The real question is whether Nigeria can convert Emirati interest into direct, long-term investment in productive sectors,” he said.

Adesugba added that financial services and real estate would continue attracting Gulf investments because they were liquid and familiar. However, he warned that their contribution to development would be limited unless the funds went into housing finance, Small and Medium Enterprises lending or infrastructure.

He said investors needed bankable projects, confidence that they could repatriate their earnings and a stable bilateral investment framework.

“None of this happens on its own. Investors need a pipeline of bankable projects, confidence that they can repatriate their earnings, and a stable bilateral investment framework. Get those right, and the inflows will follow,” he added.

• $1tn economy: Abuja chamber proposes five targets
• Amazon to invest €16bn in Germany in 2027
• Nigerian student wins research innovation award in London

On his part, the President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, said UAE investment could make the greatest impact in manufacturing and renewable energy.

Egbesola described these sectors as having a strong potential to address “some of the most pressing challenges facing Nigerian businesses, particularly high energy costs, expensive raw materials, limited access to finance and inefficient supply chains.”

Recall that The PUNCH recently reported that energy experts urged the Federal Government to attract funding from the United Arab Emirates’ investments in Sub-Saharan Africa to strengthen electricity infrastructure and improve power supply in Nigeria.

The call followed Nigeria’s participation at Middle East Energy 2026 in Dubai, where the Minister of Power, Joseph Tegbe, highlighted the country’s commitment to developing infrastructure needed to strengthen energy security.

The UAE has identified renewable energy, infrastructure and digital innovation as priority areas for long-term investment and sustainable development in Africa. The UAE Minister of State, Saeed bin Mubarak Al Hajeri, said in August that the country invested about $71.32bn in Sub-Saharan Africa between 2021 and 2025.

He also disclosed that the UAE had committed more than $70bn to renewable and green energy projects across the continent through initiatives such as Masdar’s $10bn programme and the Etihad 7 platform.

Reacting to the development, the National Secretary of the Network for Electricity Consumers Advocacy of Nigeria, Uket Obonga, said Nigeria should seek to attract part of the funds, particularly for developing its electricity infrastructure.

“So, should the government actually look at attracting part of that fund to Nigeria? Certainly, that could be one reason for the minister’s visit. The minister should be looking at whether we can attract part of that $70bn to Nigeria,” Obonga said.

He said Nigeria could target about 10 per cent of the investment, amounting to about $7bn, noting that such funding could significantly improve the country’s electricity infrastructure if properly deployed.

“If Nigeria is given about 10 per cent of that money, that would be about $7bn. If Nigeria gets about $7bn and half of that money is invested in the grid network, it will go a long way towards addressing the problem,” he said.

Obonga said part of the funds could be invested in strengthening existing distribution and grid networks, expanding infrastructure and replacing obsolete distribution network equipment, including meters and other equipment.

He, however, urged the Federal Government and the Minister of Power to clearly communicate what was being pursued and how any funds attracted from the UAE would be used.