Investors have been advised to take advantage of Nigeria’s ease of doing business drive and renewed business confidence as the country continues to recover from a prolonged period of economic recession.
The Chief Executive Officer, Afrinvest West Limited, Mr. Ike Chioke, made this call at a media briefing in Lagos over the weekend, ahead of the launch of the investment bank’s Banking Sector Report titled: “Nigeria Re-opens for Business,” scheduled to hold in London this Friday.
Mr Chioke noted that compared to the economic despondency of 2016 which saw the economy slip into a recession, business and investment confidence in Nigeria started to garner steam in the first quarter of 2017, as hope brightened that the business cycle had reached a trough and the economy was set to fully reverse course.
He noted that the second quarter Gross Domestic Product (GDP) numbers further confirmed that the recovery was on course with the economy exiting a four-quarter long recession with a mild GDP growth of 0.6 percent.
Chioke pointed out that Nigeria’s erstwhile predominantly positive macro story suffered a setback between 2014 and 2016 as macroeconomic indicators came under pressure and underperformed medium-term trends and frontier market peers.
This period, according to him, could best be described as the “lean years,” which he pointed out was one of the most challenging for policymakers since the return to democratic rule in 1999.
“As with most emerging and frontier market crises, Nigeria’s economic miseries were at first triggered by a current account imbalance and widening fiscal deficits which were a direct consequence of the fall in global oil prices which began in 2014.
“As the tide went out on commodities, Nigeria’s structural vulnerabilities – hitherto ignored by policy makers and global fund managers caught in the euphoria of the “Africa Rising” narrative – became more obvious, with the effect on the business cycle amplified by underwhelming policy responses which sapped investor confidence and led to a currency crisis,” he explained.
SOURCE:Footprint To Africa