Nigeria ranks fourth among fastest growing economies

Goodluck Jonathan
President, Federal Republic of Nigeria

Nigeria ranks fourth among fastest growing economies
Hauwa Ali, Abuja

President Goodluck Jonathan says Nigeria is projected to be among three countries that will experience the highest real per capital Gross Domestic Product (GDP) growth rate by 2050.

Jonathan stated this at an Investment Forum organised by the Securities and Exchange Commission (SEC), as part of activities to mark the fiftieth anniversary of capital market regulation in Nigeria.

The President told the forum that according to a report by economists at Citigroup, Nigeria is the fourth fastest growing economy in the world during the decade between 2001 and 2010, and also one of the three countries expected to experience the highest real per capital GDP growth rate by 2050.

“In the medium term, Standard Chartered Bank recently declared that by 2018, Nigeria will overtake South Africa as the largest economy on the continent.” He stated.

Nigeria, open for business

President Jonathan said: “The theme of the forum, “Nigeria , the preferred investment destination” captures the spirit of the Federal Government's economic transformation programme, geared towards attracting investments by creating incentives and providing an enabling environment for capital formation. “More importantly, it also captures the unsung success that we have recorded as the new hub of an increasingly robust African economy.”

“All these happy stories point in one direction: Nigeria is open for business. Now is the time to invest here; our capital market has come of age. In the past Fifty Years we have deployed our best and most committed citizens to keep watch over our investments and those of our friends from other shores. As a testament to the formidability of our regulatory system, the Nigerian Capital Market survived the worst financial crisis since 1930.”

The President reiterated his administration’s determination to foster an environment rich in opportunities for investment with the highest returns, while bringing inclusive growth to ordinary Nigerians. He also gave assurance that government would continue to strive to ensure that the nation remained investors’ paradise.

He said: “We are set to deregulate the power sector and government at various levels are increasingly looking up to the capital market to finance projects.”

Optimism

The Minister of Trade and Investment, Mr Olusegun Aganga, in his remarks said Nigeria was ready to harness its huge potentials. According to the Minister, “with the prevailing investment atmosphere, the nation’s economy would grow as projected.”

He cited the Sovereign Wealth Fund as a potent pool of investment capital.

Furthermore, Aganga said Nigeria still has over 2.2 trillion Naira in Pension Funds, with boundless potentials.

Listing other viable investment potentials, the Minister said the export and free trade zones were being activated. While noting that the cement business in the country had improved, he added that by 2012, Nigeria was expected to produce 6.8 million tons of cement, which will make it the largest producer of cement in Africa .

SEC-50 years on

The Director-General of the Securities and Exchange Commission, Ms Arunma Oteh, said the Commission’s focus was to ensure that the Nigerian Capital Market was rated alongside other world class markets.

She said that the establishment of Margin Guidelines, Code of Corporate Governance and adoption of the International Financial Reporting Standard, were among efforts to ensure that the market competed favourably with its peers around the world.

“This is the beginning of our year-long programme to mark the 50th anniversary of the capital market regulation in the country. In the course of the next twelve months, we shall organize various shows in different parts of the country, to mark the golden jubilee of market regulation in Nigeria,” she said.

The Forum was to avail economists and other stakeholders an opportunity to exchange ideas on how to leverage the nation’s potentials to attract investors.

Hajia Sani