Minister of Budget and Economic Planning, Abubakar Bagudu. Photo: Premium Times.
The Federal Government has urged Austrian investors to explore opportunities in Nigeria, saying businesses operating in the country are recording returns of more than 20 per cent in dollar terms.
The Minister of Budget and Economic Planning, Abubakar Bagudu, made the pitch on Tuesday while addressing investors at the GPF Global Vienna Meeting in Vienna, Austria.
According to a statement issued by the ministry, Bagudu spoke virtually on the theme, “Financing Africa’s Future: The Vienna Stock Exchange as a Gateway to European Capital Markets for African Government Projects.”
The minister assured prospective investors that they would not regret doing business in Nigeria, claiming that existing investors were generating returns on investment of more than 20 per cent in US dollars.
“He said prospective investors would not regret doing business in Nigeria, as existing investors in the country were earning over 20 per cent return on investment in US dollars,” the statement said.
Bagudu highlighted Nigeria’s large population and growing demand for capital as key opportunities for Austrian businesses, particularly technology-driven companies.
“We are confident that Nigeria is a proven market of choice with strong absorptive capacity, with over 200 million people. So, Austrian companies and businesses well-rooted in technology can operate profitably in Nigeria,” he said.
The minister attributed the improvement in investor confidence to economic reforms implemented by the President Bola Tinubu administration over the past three years.
He said the reforms were aimed at eliminating distortions in the economy, particularly in the foreign exchange market, while creating a more predictable, rules-based environment for private investment.
According to Bagudu, the measures have helped stabilise the macroeconomic environment and improve predictability in the foreign exchange market for investors seeking to move funds into and out of Nigeria.
“The forex market has stabilised, with free entry and exit. Foreign reserves have risen significantly to over $50bn, providing over 11 months of import cover,” he said.
Bagudu also pointed to increased revenues accruing to the three tiers of government as another benefit of the reforms, saying the additional resources had strengthened governments’ capacity to provide public services.
He further said movements in Nigeria’s bond spreads reflected growing investor confidence in the country’s economy.
The minister’s appeal comes as the Federal Government steps up efforts to attract foreign capital to support its target of growing Nigeria’s economy to $1tn by 2030.
