Finance industry experts have highlighted how local and foreign investors can tap opportunities in the Nigerian economy.
Stakeholders who were at the third edition of the Coronation Merchant Bank’s interactive Session Series, themed: “Nigeria moving beyond COVID-19 – Opportunities for Investors”, noted that the Nigerian economy remains resilient despite economic and social headwinds elicited by the COVID-19 pandemic.
The event which was held virtually featured expert speakers such as the Director-General of the Debt Management Office, Ms Patience Oniha; Senior Vice President, FMDQ Group, Emmanuel Etaderhi; Managing Director at Comercio Partners Capital Ltd, Stephen Osho; Chief Economist of Coronation Merchant Bank, Chinwe Egwim and Treasurer and Head of Global Markets at Coronation Merchant Bank, Iyobosa Sorae, among others.
Delivering the keynote address, Oniha said, “The composition and diversification of the country’s Gross Domestic Product and revenue base make for more stable growth going forward.”
“The Nigerian government has introduced several reforms which are being implemented to attract more investments, grow and further diversify the country’s GDP and revenue. Nigeria remains open to investment opportunities that exist in securities (in the domestic and international markets) and direct investments in various key projects across the country.
The government also encourages public-private partnerships.”
Speaking during the panel discussion, Emmanuel Etaderhi representing Bola Onadele, Koko, Chief Executive Officer, FMDQ Group, said, “Countries borrow for very valid reasons, mostly to put them in a stronger position in terms of their economic strength. However, borrowing beyond the ability to pay, makes debt unsustainable.
This has an impact on investments, whether external or local, because the pricing of the instruments within the financial markets will be affected, as well as the ability to earn externally.
“It is very important to maintain a sustainable debt level and more importantly, to use the debt for productive purposes which can have a multiplier effect on the economy and generate more revenue.
The government can refinance debt by looking at lower interest borrowing instruments in the capital markets. It can also use the instrumentality of the financial markets to stimulate economic activities that will enable the revenue base to expand exponentially.”