Resource Nationalism On The Rise In Sub-Saharan Africa? Possible Reasons And Fixes Using Nigeria As A Case Study.

A.i Ogbalu

doi:10.7176/jaas/54-07

Abstract

While host governments are agreed on the point that the inflow of foreign direct investment is a necessary economy booster, enough is not done by the host governments to curb the increasing nationalistic treatment meted out to foreign investors.Discourse in this article revolves around resource nationalism in select sub-Saharan African countries, highlighting the trends, possible reasons, and fixes – using Nigeria as a case study.This article, therefore, explores the varied rationales and motivation for the nationalistic policy initiatives by host governments in sub-Saharan Africa and shines a beaming light on Nigeria, the ‘Giant of Africa’ giving glaring examples of resource nationalism. Issues revolving around the Federal Government’s ultimatum to oil contractors to make retroactive payments; the flight of the two of the largest banking institutions from Nigeria; and the misfortunes of one of the largest African mobile telecommunications (MTN) in Nigeria are discussed at length.The paper concludes by providing possible fixes and nuggets of advice that should aid in either halting or diminishing the effect of policy initiatives, dubbed as nationalistic, by the host governments. Keywords: Resource nationalism; Sub-Saharan Africa; Foreign Investment; Policies DOI : 10.7176/JAAS/54-07 Publication date : April 30 th 2019

Highlights

The United States of America, Europe and, more recently, China, have taken a keen interest in Sub-Saharan Africa over the years by investing billions of dollars in the different sectors, in the region
Discourse in this article would revolve around resource nationalism in select sub-Saharan African countries, highlighting the trends, possible reasons and fixes – using Nigeria as a case study
The rationale and motivation for the policy initiatives are country-specific, key drivers are the intent of the host governments to: i) capture a greater value from the resource sectors through increased state participation, higher taxes and royalty rates; ii) redistribute wealth and counter the effect of colonialism and its antecedent economic policies; iii) fund capital projects and ‘win political points’ for elections1, e.t.c

Summary

Introduction

The United States of America, Europe and, more recently, China, have taken a keen interest in Sub-Saharan Africa over the years by investing billions of dollars in the different sectors ( the energy and mineral resources sector), in the region.

Results

Conclusion