The Nigerian economy looks promising as investment flowing into the country is said to remain strong as the giant’s economy recovers from its worst fall in 25 years. The economy experienced a revenue shortfall due to the decline of oil output as the amount of crude being pumped nearly reached the lowest point in three decades.
Speaking at a conference in London on Monday, the country’s Vice President, Yemi Osinbajo, noted that 41 planned investment projects were recorded in 22 of its 36 states in the first eight months of 2017, with an estimated value of $20 billion and capital importations have doubled in the last four months, adding that Lagos state, Nigeria’s commercial hub, is planning a 3,000-megawatt power plant.
Osinbajo went further to highlight Nigeria’s government intention to focus on opening up the economy for more private-sector participation in the power sector as well as the agricultural value chain in the next few months.
The government intends to keep diversifying the economy by spending one-third of this year’s budget on building new roads, rail, ports and power facilities to help the economy recover after it shrunk by 1.6 percent last year.
“One of the key things for us is ensuring that the private sector takes the lead and brings in their capital.”
With the oil sectors improvement and the ease on foreign exchange restrictions, a new currency-trading window was created for portfolio investors and importers where foreign currencies can be bought at market-determined rates.
The International Monetary Fund forecast a 0.8% expansion in the country’s economy this year as Nigeria looks to plug a 2017 budget deficit that it forecast at 2.3 trillion naira ($6.4 billion), or 2.2 percent of GDP.