News / Africa

Nigeria Attractive to Investors Despite Challenges, Says Official

Peter Clottey

Nigeria’s Industry, Trade and Investment Minister says there is a strong appetite for both local and international businesses to invest in the West African nation’s economy, despite the security challenges the country faces.

Olusegun Olutoyin Aganga said recent measures, including subsidies and incentives, have created a business-friendly environment that is attracting investors. He said the move is part of the administration’s bid to create jobs for the country’s youth.                                                           

Aganga outlined some of the opportunities and the country’s potential, which he says attract global businesses to invest in Africa’s biggest economy.

“The investment appetite is huge and that is driven by many opportunities in the country [and] it’s also driven by the level of return on investment…with an average return of 35.5 percent that concurs with global average of 6%” said Aganga.

“The second major driver is the strong macro-economic environment. We are talking about a country that has consistently averaged growth [rate of] about seven percent over the last 10 years. A country when you look at the debt to GDP ratio is only about 12 percent,” said Aganga. “When you look at the exchange rate, it has been stable over a long period of time. When you look at inflation, it’s roughly about eight percent now.”

Nigeria has been able to deliver about 35 percent to the country’s capital market in 2012, and 45 percent in 2013, according to Aganga. 

He said President Goodluck Jonathan’s administration is addressing some of the challenges businesses face, which he says boosts both local and international investment in the country.

“This particular government has a number of transformational policies that are actually encouraging investors to come into different sectors of the economy,” said Aganga.

He said the West African nation has in abundance the ingredients that attract investors’ needs, including capital, technical know-how, raw materials and a market to sell their products.

“When all four come together, you definitely make huge returns for your shareholders. Capital and technical know-how, you can move anywhere in the world,” said Aganga.

Some analysts say the country’s well documented erratic electrical power challenges will undermine the administration’s efforts to attract private investors. They also said the lack of power makes the cost of producing goods and services expensive.

Aganga admits the electrical power generation difficulties but adds that the administration has taken steps, including privatizing power generation and distribution, to improve nationwide electricity power supply.

“Yes, it curtails investments, but when you look at the history [businesses] have been operating in this country for decades and the return on investment remains as high as 35 percent. So what that tells you is that there are ways around that which the bigger companies have gone around that,” said Aganga.

“Yes, the lack of power makes the cost of production higher, but that is made up for by government incentives, which [are] very generous to investors, because of the cost of labor, and raw material which is quite low and the market so that offsets that,” said Aganga.

Some critics say the privatization of the power sector is ill advised, arguing that the selling of government assets is unlikely to improve power supply. Aganga disagreed.

“Yes, we have sold our assets, realized over $3 billion, but that is not the story. The story is that it has opened the door for the private sector to drive that and today we have aggregate pipeline investment of more than a $100 billion coming to that sector,” said Aganga.

“So we will see a gradual increase in power production…Over the next three to five years you will see a significant increase because of the level of investment going to power,” said Aganga. “Again we are not just relying on gas supply we are looking at alternative sources of power. This government has made this bold decision, which is paying off and it will not be the same country in four to five years.”

You May Like

Cambodia Seeks Official UN Maps for Vietnam Border

Notice of request comes as 2 countries open border talks Tuesday after a clash last month More

From South Africa to Vietnam, Cyclists Deliver Message Against Rhino Horns

Appalled by poaching they saw firsthand, sisters embark on tour to raise awareness in countries where rhino horn products are in demand More

Uber Wants Johannesburg Police Protection

Request follows recent protests outside ride-hailing service's Johannesburg office More

This forum has been closed.
Comment Sorting
Comments
     
by: Joe from: Outside Nigeria
August 02, 2014 11:35 AM
Well present interview with excellent response by the minister of trade and planning Mr Segun Aganga. The present administration had proved to the country and the world the country can be transform to become investment / economic hotspot of the continent. How we wish 30plus military rule achieved half of what the present administration so far achieved in less than7years of office. Therefore Nigerians should stand by the administration to actualize the full plan the administration has for the country. Lastly, GEJ lead administration not wary, fail nor faulter ,and should continues the good work for the country and making sure no political,ethnicity,selfish interest is superior to national interest.Nigeria ispoised to rewrite her history.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
New Implant Could Help Restore Movement to Paralyzed Limbsi
|| 0:00:00
...    
🔇
X
Maia Pujara
July 07, 2015 10:01 PM
A half-million people suffer spinal cord injuries each year because of car accidents, serious falls and diseases, according to the World Health Organization. Researchers are now working on a soft but strong spinal cord implant that could one day restore movement in paralyzed individuals. VOA’s Maia Pujara reports.
Video

Video New Implant Could Help Restore Movement to Paralyzed Limbs

A half-million people suffer spinal cord injuries each year because of car accidents, serious falls and diseases, according to the World Health Organization. Researchers are now working on a soft but strong spinal cord implant that could one day restore movement in paralyzed individuals. VOA’s Maia Pujara reports.
Video

Video Getting it Done Beyond a Nuclear Deal

If a nuclear deal is reached between Iran and world powers in Vienna, it will be a highly technical road map to be used to monitor nuclear activity in Iran for years to come to ensure Tehran does not make nuclear weapons. Equally as complicated will be dismantling international sanctions that were originally intended to be ironclad. VOA’s Heather Murdock talks to experts about the key challenges any deal will present.
Video

Video Rice Farmers Frustrated As Drought Grips Thailand

A severe drought in Thailand is limiting the growing season of the country’s important rice crop. Farmers are blaming the government for not doing more to protect a key export. Steve Sandford reports from Chiang Mai, Thailand.
Video

Video Making Music, Fleeing Bombs: New Film on Sudan’s Internal Refugees

In 2012, Sudanese filmmaker Hajooj Kuka went to make a documentary among civil war refugees in Sudan’s Blue Nile and Nuba Mountains region. What he found surprised him: music was helping to save people from bombing raids by their own government. VOA’s Carolyn Weaver has more.
Video

Video 'From This Day Forward' Reveals Difficult Journey of Transgender Parent

In her documentary, "From This Day Forward", filmmaker Sharon Shattuck reveals the personal journey of her transgender father, as he told his family that he always felt he was a woman inside and decided to live as one. VOA’s Penelope Poulou has more.
Video

Video Floodwaters Threaten Iconic American Home

The Farnsworth House in the Midwest State of Illinois is one of the most iconic homes in America. Thousands of tourists visit the site every year. Its location near a river inspired the design of the house, but, as VOA’s Kane Farabaugh reports, that very location is now threatening the existence of this National Historic Landmark.
Video

Video Olympics Construction Scars Sacred Korean Mountain

Environmentalists in South Korea are protesting a Winter Olympics construction project to build a ski slope through a 500-year-old protected forest. Brian Padden reports that although there is strong national support for hosting the 2018 Pyeongchang Winter Olympics, there are growing public concerns over the costs and possible ecological damage at the revered mountain.
Video

Video Xenophobia Victims in South Africa Flee Violence, Then Return

Many Malawians fled South Africa early this year after xenophobic attacks on African immigrants. But many quickly found life was no better at home and have returned to South Africa – often illegally and without jobs, and facing the tough task of having to start over. Lameck Masina and Anita Powell file from Johannesburg.
Video

Video Family of American Marine Calls for Release From Iranian Prison

As the crowd of journalists covering the Iran talks swells, so too do the opportunities for media coverage.  Hoping to catch the attention of high-level diplomats, the family of American-Iranian marine Amir Hekmati is in Vienna, pleading for his release from an Iranian prison after nearly 4 years.  VOA’s Heather Murdock reports from Vienna.
Video

Video UK Holds Terror Drill as MPs Mull Tunisia Response

After pledging a tough response to last Friday’s terror attack in Tunisia, which came just days before the 10th anniversary of the bomb attacks on London’s transport network, British security services are shifting their focus to overseas counter-terror operations. VOA's Henry Ridgwell has more.
Video

Video Hate Groups Spread Influence Via Internet

Hate groups of various kinds are using the Internet for propaganda and recruitment, and a Jewish human rights organization that monitors these groups, the Simon Wiesenthal Center, says their influence is growing. The messages are different, but the calls to hatred or violence are similar. VOA's Mike O’Sullivan reports.
Video

Video Blind Somali Journalist Defies Odds in Mogadishu

Despite improving security in the last few years, Somalia remains one of the most dangerous countries to be a journalist – even more so for someone who cannot see. Abdulaziz Billow has the story of journalist Abdifatah Hassan Kalgacal, who has been reporting from the Somali capital for the last decade despite being blind.

VOA Blogs