Nigeria rallies investors as reforms gain traction

The Nigerian government is rallying investors to commit more investments into one of Africa’s biggest economies as various reforms implemented some two years ago begin to yield results.

In a keynote address at the BusinessDay’s 13th CEO forum in Lagos Thursday, Finance Minister Wale Edun stated that Nigeria is at “a turning point”, urging investors to seize the momentum and pour in their capital into the country.

“Invest in Nigerian solutions to Nigerian problems. 
Build long term sustainable businesses. We’re inviting our foreign partners to help us as we reshape the new Nigeria,” Edun, represented by Sanyade Okoli, special adviser to the president on finance and economy said.

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“Now more than ever, we have more reasons to be optimistic than not to be optimistic. The fundamentals are in a much better position than they have been for quite a while.”

Investors’ confidence is fast-rising in Nigeria after the government took bold steps to make its economy more market-driven by eliminating costly fuel subsidies and unifying the exchange rate.

Read also: FX reforms fuel inflows to six-year high as naira, inflation stabilises

The once dollar-starved economy now has well over $20 billion in net reserves with gross reserves climbing to about $38 billion thanks to sweeping market policies that have boosted confidence and rein in inflows.

Edun stressed that the reforms have been painful in the short-term. He however noted that the economy is gradually recovering from the shocks brought by the reforms, assuring that respite is underway.

In the last two months Nigeria’s inflation has slowed after rising and hitting nearly three decades high last year. The naira has also remained steady despite global shocks and oil volatility that have weighed on emerging markets currencies.

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Business confidence is also on the high, surging for the sixth consecutive month this year thanks to the easing inflationary pressures, according to a report by the Nigerian Economic Summit Group.

These trajectories are expected to continue throughout the year as per projections by experts, further strengthening investor sentiment.

Edun assured investors and Nigerians alike that the government is committed to “staying the course” while sustaining and consolidating the progress made so far.

“We as a government will remain open to constructive engagement with the private sector,” he said.