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The Minister of Budget and Economic Planning, Abubakar Bagudu, has said that President Bola Tinubu’s administration has stabilised the economy to the extent that foreign reserves have risen significantly to over $50 billion, providing over 11 months of import cover.
Bagudu addressed the GPF Global Vienna Meeting in Vienna, Austria, at the weekend via a video message on “Financing Africa’s Future: The Vienna Stock Exchange as a Gateway to European Capital Markets for African Government Projects”.
The minister stated that the government has stabilised the country’s macroeconomy, adding that the foreign exchange market has become stable and predictable.
“The forex market has stabilised, with free entry and exit. Foreign reserves have risen significantly to over $50 billion, providing over 11 months of import cover,” he said.
Bagudu urged Austrian investors to explore Nigeria’s abundant investment opportunities, saying that President Bola Tinubu’s economic reforms have repositioned the country as an investment destination for businesses seeking decent returns.
“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,” he told the investors.
Bagudu stated that Tinubu’s economic reforms, which aimed at macroeconomic predictability and at giving confidence to the market, particularly private capital holders, by removing all distortions, including in the forex market, have delivered significant gains within three years.
He explained that by providing a rule-based playing field for the capital market, the reforms have repositioned the economy for investment, as investors’ confidence soared.
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Bagudu pointed out that the reforms have led to remarkable growth, as reflected in the phenomenal revenue increase across the three tiers of government, offering them the opportunity to provide more services for their citizens.
Making a case for Austrian investors to trust Nigeria, he said the bond spread reflects greater confidence in the economy, explaining that Nigeria and Austria share similar demographics and comparative economic advantages that make the Austrian stock market attractive to the former.
He said Nigeria’s ambitious pursuit of a $1 trillion economy by 2030 makes the search for foreign capital more compelling, adding that the country sees a significant opportunity in the Austrian stock market to attract capital.
Bagudu argued that the successes of the economic reform were sufficient to incentivise Austrian investors, explaining that this was why his ministry, the Ministry of Finance, and Austrian officials collaborating with the Austrian Stock Exchange floated a company, ESME Limited, as a special purpose vehicle to fund investments in Nigeria.
The minister stated that the company has two representatives from the Ministry of Finance Incorporated and distinguished Austrian businessmen on its board, explaining that the company would issue bonds on the Viennese Stock Market to fund investments by Austrian and other companies in green technology, waste-to-energy, textiles, pharmaceuticals, agriculture, and water in Nigeria, and to scale up.
He said that Tinubu’s administration appreciated the company’s progress on the forthcoming bond issue and said it was confident it would strengthen business relationships between Nigeria and Austria.
Bagudu said that 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.
