Flexible FX rates will increase FDI, portfolio investments, says Osinbajo  

Vice-President Yemi Osinbajo has said the Federal Government expects that the deregulation of the Petroleum downstream sector and the flexible exchange rate would increase not just the inflow of Foreign Direct Investment (FDI) but also portfolio investments in the country.

He said the government was however ensuring that the country attracts enduring investments.

“Let me say that first, both local and foreign investment are crucial in the turn around that we expect.

“We expect that deregulation and the flexible exchange rate would lead to an increase in the inflow of not just Foreign Direct Investment but also portfolio investment.

“We expect that that will happen, of course we’re not necessarily overly excited and enthusiastic about portfolio investment that we want to see. This is hot money and it will go and come.

“But we are focused on ensuring that enduring investments, in the form of FDI are coming,” Osinbajo was quoted to have said during an interview with reporters after participating in the Lagos Chamber of Commerce and Industry’s Presidential Policy Dialogue in Lagos.

Total foreign investment inflows into the country dipped 54.34 percent to $$710.97 million in the first quarter of 2016, the the lowest level since 2007 when the National Bureau of Statistics (NBS) commenced capturing and rating the level of capital imports into the country.

The transcript of the interview made available to journalists by the Senior Special Assistant on Media and Publicity, Laolu Akande, said the Vice-President who heads the government’s Economic Management Team said the administration was also focusing on local investments such as the 650,000-barrel capacity Dangote Refinery; fertilizer plants, and the Honeywell sorghum plant among others.

Osinbajo also expressed hope that once all the local investments come on board by atleast 2019, the country’s fiscal landscape would change positively.

“Now these are very significant local investments and we expect that if these local investments are encouraged, and we are encouraging them, and they come on stream in the timelines that they have specified most of them should come on stream between now and 2019…All of these that i’ve mentioned should come on stream, we expect that this will be very very significant in terms of even changing the fiscal landscape” he said.

 

Elizabeth Archibong