Investor confidence in Nigeria rising, says Aganga
Industry, Trade and Investment, Minister,
has hailed ongoing policy changes implemented by the Federal Government in recent months, which he believes have improved corporate governance, besides providing an enabling environment for domestic and foreign investors.
Speaking at the New York Stock Exchange, he said a significant number of Nigerian and global companies are taking advantage of this by investing in the country.
For the second year running, the United Nations Conference on Trade And Development (UNCTAD) reports for 2013 and 2012 ranked Nigeria as Africa’s number one destination for Foreign Direct Investment (FDI).
Nigeria was ranked fourth globally in terms of average returns on investments at 35.5 per cent. The country’s current growth rate is between 6 and 7 per cent, well ahead of the global average.
As a testimony to this fact, a statement by the Bank of Industry (BoI), recalled that this year alone, the Dangote Group has announced plans for a $9 billion investment, while General Electric is working on a $1 billion investment, (of which $250 million is for capital investment commitment in 2013 with expected completion of construction in 2017). There are also investments in the privatized power sector put at about $2.5 billion, expected to bolster Nigeria’s position to maintain its lead as Africa’s number one investment destination and potentially surpass the 2012 FDI figure.
Aganga further said the recent investment by the Dangote Group to build one of Africa’s largest industrial complexes and oil refineries in Nigeria is a “significant manifestation of investor confidence in Nigeria and provides a major boost to the country’s industrial sector and long-term growth prospects.”
Ahead of this, the group, early last month, signed a $3.3 billion loan finance deal with Nigerian and foreign banks to fund the investment to build the largest oil refinery in Africa as well as a fertiliser and petrochemical plant that would not only see Nigeria attain self sufficiency in refined petroleum products but also become a net exporter of petroleum products by the end of 2016.
Commenting on this, Dangote, President of the Dangote Group, said: “As an investor who believes in Nigeria, knows Nigeria well and whose prosperity was made in Nigeria, we are confident in the long term growth prospects of this great country.