Don't Miss


Home   >   Business   >   Industries   >   Economy   >   Increased foreign investment will drive economic recovery – Analysts

Increased foreign investment will drive economic recovery – Analysts

By on April 8, 2015

The smooth conduct of the presidential and National Assembly elections will lead to the recovery of Nigeria’s economy, analysts at Meristem Securities Limited have said.

The analysts noted in the latest Meristem investment guide that the success of the election had sent a possible signal to investors, stressing that increased foreign direct investment and foreign portfolio investment would drive economic growth.

Reviewing the elections, they said, “The voice of Nigerians seemed to have resounded loud and clear in the recently concluded presidential elections, as the people united to select the next president of the country, in spite of the overwhelming power of incumbency usually wielded in African elections.

“Contrary to general expectations, the announcement of Gen. Muhammadu Buhari as the winner of the 2015 general elections was received with jubilations across most regions in the country, facilitated by the quick concession of defeat by the incumbent, President Goodluck Jonathan.”

They explained that given the significant international focus on the country, owing to Nigeria’s position as the largest economy and most populous country in Africa, coupled with the body language of foreign observers and stakeholders which, in their opinion, suggested a preference for Buhari’s candidacy, they expect a turnaround in the nation’s economic fortunes.

“This, we believe will be driven by increased inflow of foreign direct and portfolio investments into the country driven by improved perception of the country’s potentials by foreign governments, investors and rating agencies,” they added.

According to the analysts, after 16 years of sustained democracy, four elections and three presidents all from the People Democratic Party, Nigerians have set a new precedence for democracy and electoral processes in the country.

“We believe this feat was achieved due to the growing frustrations of citizens with regards to the state of the economy amidst security challenges, coupled with the rise of a formidable opposition party following the merger of key regional political parties (ACN, CPC and ANPP) in February 2013,” they explained.

However, they stressed that given the knackered condition of the economy (external debt of $26bn, devaluation, low-level global oil prices, currency volatility etc.), they did not envisage an immediate change in the economic state of the country.

“We nonetheless believe that the anti-corruption drive of the incoming government may help plug in leakages, reduce wastages and significantly cut back on cost of governance, thus freeing up funds for increased government spending and growth stimulating activities,” they said.

 

[Punch]

3 Comments

  1. olamide

    April 8, 2015 at 4:09 pm

    here,minister for finance is talking about foreign investor,why don’t we empower Nigerians to act as the investor we are looking for,you see people are ready to work but no financing,like me,i study food science and tech willing to start making all kitchen appliances in my country,Nigeria but becomes hard to get finance,to create such industry,I need millions of u.s dollars,i can’t borrow and govt can’t help,where i’m I going to start from,very simple,provide funding and you will see investors within the country

    • Proud Yoruba

      April 8, 2015 at 6:43 pm

      Go on. The Internet and search for angel investors, these are investors who invest seed money, that is money for new businesses. Before you submit your proposal, make sure it is up to international standards. We are in a global economy, you are not restricted by borders, if you have good prototypes of your products, you’ll surely get investors”

      • olamide

        April 8, 2015 at 7:29 pm

        whatever,i’m not looking for any foreign investor and if you wanna get me right,i’m just antagonising and showing my present condition to my business plan,we always mention foreign foreign foreign!!!……The position of the Nigeria economy today is as a result of foreign thing we keep appreciating.we import everything in this country and we said we want a stable economy,If possible human part is replaceable,we will have being a country importing human spare part,if i could mention,we import all appliances,electronic,kitchen,clothings,shoes,building material and even food in a population of over 120 million people,No enlightment nothing nothing but just for the minister to always encourage foreign visitor,even there wouldn’t be places for uneducated and under-developed people since foreigners has the major aspect in the economy,these is just a bitter truth,if you are a minister and the the only thing you’ve got for Nigerians praying for better standard of living is just to let them you are expecting foreigners to invest,it a shame on the ruling govt and even the nation at large,create better ways of living for ordinary NIGERIANS and truth me,things we be better for us in this country and we can proudly give foreigners redcard