Lagos- An investment expert, Mr Kalu Abosi, on Friday assessed the Nigerian economic climate and said it is still attractive for foreign investments.
Abosi, who is the Head of Corporate Finance & Capital Markets SPA Ajibade & Co, made the assessment in a lecture titled: “Nigeria-macro Economic Environment and Implications for Foreign Investment”.
The lecture was organised by the Nigeria-South Africa Chamber of Commerce in Lagos.
He said that Nigeria’s economic climate was still attractive for foreign investors despite its present challenges.
The expert remarked that Nigeria, as the largest economy of Africa with GDP of $549.6 billion, was still attracting foreign investments, especially from the private equity funds.
“Amidst the challenging economy, Nigeria’s foreign direct investment still remains the third highest in Africa.
“Better understanding of the vagaries of doing business in Nigeria creates savvier investors.
“Monthly foreign portfolio investment (FPI) transaction at the Nigeria Stock Exchange, which was N125 billion at the end of 2014 decreased to N99 billion at the beginning of 2015, down 20.39 per cent from December, 2014.
“Domestic investors gave up approximately 4.48 per cent of trading to foreign investors, reducing from 51.76 per cent to 47.76 per cent while FPI transaction rose from 48.24 per cent to 52.24 per cent.
“The present economic challenges of Nigeria are not insurmountable as things are not as bad as people make it to sound,’’ Abosi said.
The expert said that irrespective of the outcome of the general elections, Nigeria would keep growing economically.
“Growth in the economy will continue, even if at lower than forecast rates if government adopts reduced cost of governance by cutting wastes and fighting corruption,’’ he said.
Mr Folusho Phillips, the President of the chamber, urged the government to deal with corruption at all levels.
Corruption, he said, kills the economy of the country. (NAN)