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

Video Migrants Caught in No-Man's Land In French Port

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching 'Fortress Europe' More

Video Westgate Mall Attack Survivors Confront Painful Memories

On anniversary of terror attack, survivors discuss how they have coped with trauma they experienced that day More

New Hints That Dark Matter Exists

New evidence from International Space Station hints at existence of dark matter and dark energy 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.
Migrants Caught in No-Man's Land Called Calaisi
X
Lisa Bryant
September 19, 2014 5:04 PM
The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Militant Assault in Syria Displaces Thousands of Kurds

A major assault by Islamic State militants on Kurds in Syria has sent a wave of new refugees to the Turkish border, where they were stopped by Turkish border security. Turkey is already hosting about 700,000 Syrian refugees who fled the civil war between the government and the opposition. But the government in Ankara has a history of strained relations with Turkey's Kurdish minority. Zlatica Hoke reports Turkey is asking for international help.
Video

Video CERN Accelerator Back in Business

The long upgrade of the Large Hadron Collider is over. The scientific instrument responsible for the discovery of the Higgs boson -- the so-called "God particle" -- is being brought up to speed in time for this month's 60th anniversary of the European Organization for Nuclear Research, known by its French acronym CERN. Physicists hope the accelerator will help them uncover more secrets about the origins of the universe. VOA’s George Putic reports.
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video Russian Economy Reeling After New Western Sanctions

A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Belgian Researchers Discover Way to Block Cancer Metastasis

Cancer remains one of the deadliest diseases, despite many new methods to combat it. Modern medicine has treatments to prevent the growth of primary tumor cells. But most cancer deaths are caused by metastasis, the stage when primary tumor cells change and move to other parts of the body. A team of Belgian scientists says it has found a way to prevent that process. Zlatica Hoke has more.
Video

Video Mogadishu's Flood of Foreign Workers Leaves Somalis Out of Work

Unemployment and conflict has forced many young Somalians out of the country in search of a better life. But a newfound stability in the once-lawless nation has created hope — and jobs — which, some say, are too often being filled by foreigners. Abdulaziz Billow reports from Mogadishu.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.
Video

Video NASA Picks Boeing, SpaceX to Carry Astronauts Into Space

The U.S. space agency, NASA, has chosen Boeing and SpaceX companies to build the next generation of spacecraft that will carry U.S. astronauts to the International Space Station by the year 2017. The deal with private industry enables NASA to end its dependence on Russia to send space crews into low Earth orbit and back. Zlatica Hoke has more.
Video

Video Future of Ukrainian Former President's Estate Uncertain

More than six months after Ukraine's former President Viktor Yanukovych fled revolution to Russia, authorities have yet to gain control of his palatial estate. Protesters occupy the grounds and opened it to tourists but they are also refusing to turn it over to the state. VOA's Daniel Schearf reports from Mezhigirya, just north of Kyiv.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid