Nigeria’s Unseen Barriers to Economic Growth
In a world where countries compete for talent, investment, and tourism, Nigeria’s restrictive and costly visa process puts it at a disadvantage.
Dear Advocate of Reasoning,
As Nigeria grapples with rising inflation and economic instability, its visa policies are an overlooked yet significant barrier to recovery. In this week’s letter of reasoning, we reasoned that the steep visa-on-arrival fee of $170 is singled out as one of the major deterrents to tourism and foreign investment—two sectors that could be lifelines for Nigeria’s economic growth.
Recently, the fee was nearly doubled from $90 in an effort to boost revenue, but the unintended consequence is that it discourages the very people Nigeria needs most: investors and tourists. The Liberalist reveals that countries with more relaxed visa policies, such as Seychelles and Mauritius, have seen an influx of foreign tourists and investments. Seychelles, for example, which doesn’t require entry visas, enjoys a 7 percent annual increase in tourist arrivals, while Mauritius, since adopting a visa-free policy in 2013, has witnessed consistent growth. The story is vastly different for Nigeria, where tourism contributes a meagre 2 percent to GDP, dwarfed by Seychelles’s 20 percent and Mauritius’s 12 percent.
The high cost of entry is also impacting Nigeria’s global image. Foreign investment in the country has nosedived, with inflows falling by a staggering 26.7 percent in just one year. In 2023 alone, foreign direct investment dropped to $3.7 billion from $5.3 billion the previous year. This is not an isolated statistic; over the past decade, Nigeria has lost a massive $19 billion in foreign investments. Experts argue that high visa fees are one of the many factors to blame, acting as a gatekeeper to opportunities.
Even global reporters like CNN’s Larry Madowo have highlighted the issue. Madowo shared his experience of paying $215 for a single-entry visa to Nigeria—each time he visited—while noting that in the same period, he traveled to Uganda, South Africa, and Ghana without needing a visa. He bluntly questioned Nigeria’s strategy, asking how the country could hope to attract international visitors and entrepreneurs if it continues to place unnecessary hurdles in their way.
The World Economic Forum paints a bleak picture of Nigeria’s competitiveness in the travel and tourism sector, ranking the country 129th out of 136 globally. Meanwhile, neighboring countries like Ghana (ranked 120th) and South Africa (53rd) are reaping the benefits of more welcoming policies. Ghana’s visa fees are as low as $60, while South Africa charges a mere $32, both far more attractive than Nigeria’s $170 biometric fee.
Beyond tourism, easy migration brings foreign visitors who bring with them not just capital but skills, knowledge, and cultural exchange. This could be the key to creating more jobs, fostering innovation, and reviving dormant industries in Nigeria. Industry leaders like Seyi Adewale, CEO of Mainstream Cargo Limited, argue that restricting visas is akin to limiting new sources of foreign exchange—one of the most critical lifelines for a struggling economy.
In a world where countries compete for talent, investment, and tourism, Nigeria’s restrictive and costly visa process puts it at a disadvantage. If the government is serious about economic recovery, it must lower these barriers, embrace freer movement, and open the door to new opportunities that will benefit the nation.
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Stay free and keep reasoning!