• Wednesday, February 28, 2024
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‘Nigeria to experience drop in foreign direct investment in 2014’

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Doyin Salami, an economist with the Lagos Business School (LBS), on Thursday said that the quantitative tapering in the U.S. would cause a drop in Nigeria’s foreign direct investment (FDI) inflow in 2014.

Salami made the assertion during a breakfast meeting organised by the Fund Managers Association of Nigeria (FMAD) in Lagos.

He said that the U.S. quantitative tapering would lead to investment out flow in emerging and frontier markets, including Nigeria.

Salami said that the nation would face weaker currency, high interest rates, inflation rates, high expenditure and slippery revenue due to forthcoming general elections.

He also said that in spite of the challenges, the Nigerian economy would experience stable growth in the medium-term with progress in power reforms and transportation transformation.

Salami stressed the need for development of new products and markets by fund managers for economic growth and development.

“For Nigeria to remain competitive in the global market, there is need to develop dynamic products and new markets where foreign investment inflows could be channeled to other sectors of the economy,” he said.