The Federal Government has assured Austrian investors that businesses operating in Nigeria are generating returns of more than 20 per cent in dollar terms, as it steps up efforts to attract foreign capital into the country.
The Minister of Budget and Economic Planning, Abubakar Bagudu, made the disclosure while wooing investors at the GPF Global Vienna Meeting in Vienna, Austria, on Tuesday.
According to a statement issued by the ministry, Bagudu addressed the meeting 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 urged prospective investors to consider Nigeria, assuring them that they would not regret investing in the country.
He said existing investors in Nigeria were recording returns on investment of more than 20 per cent in US dollars.
The statement read, “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.”
According to the statement, Bagudu said Nigeria’s large population and growing need for capital offered significant investment opportunities for Austrian companies, especially those with expertise in technology.
“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,” Bagudu was quoted as saying in the statement.
According to him, the economic reforms introduced by the President Bola Tinubu administration over the past three years have strengthened macroeconomic stability, improved predictability and boosted investor confidence.
Bagudu said the reforms were aimed at correcting distortions in the economy, particularly in the foreign exchange market, while creating a transparent, rules-based environment for private investment.
He added that the measures had helped stabilise the economy and made the foreign exchange market more predictable for investors looking to move capital 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,” the minister said.
Bagudu said achieving the target would require increased access to foreign capital, noting that the government viewed the Austrian capital market as a potentially important source of financing.
He disclosed that the Ministry of Budget and Economic Planning, the Ministry of Finance and Austrian officials working with the Austrian Stock Exchange had established ESME Limited as a special purpose vehicle to mobilise capital for investments in Nigeria.
According to him, the company’s board comprises two representatives of the Ministry of Finance Incorporated and Austrian businessmen.
Bagudu said ESME Limited would issue bonds on the Vienna capital market to raise funds for investments by Austrian and other companies operating in Nigeria.
