Investor Presentaiton
STATEMENT OF THE EXECUTIVE SECRETARY/CEO
Nigeria has a bright future on the world stage, the notable macro-economic
stability achieved over the past few years is being translated into improvement in
the quantum and quality of FDI attracted. Reforms of investment related laws
have aimed at liberalizing investors' entry and at strengthening protections for
foreign investment, promote openness and generally made investment
environments more favourable for inward FDI. Nigeria is establishing itself as a
fully democratic and free-market reformer.
a
In Nigeria well-run businesses generate returns that far exceed returns on
equivalent investments in other markets with similar risk profiles
demonstration that while the risk levels may be considered high, the superior
return levels are even higher. In the context of the global financial crises, Africa is
rated the most favourable investment destination. Nigeria is ranked first
followed by Ethiopia; South Africa etc (Africa Rainbow Consulting) Nigeria has
the highest Return on Investment (ROI) in Africa (35% - 45%) generally (70 -
100% in some sectors)
UNCTAD reported that for the third consecutive year, global FDI inflows rose in
2006 - by 38% - to reach $1,306 billion. The growth of FDI in 2006 occurred in all
three groups of economies: developed countries, developing countries and the
transition economies of South-East Europe and the Commonwealth of
Independent States (CIS). Global FDI inflows also rose in 2007 reached $1,979
billion, well above the previous all-time high set in 2000. The increase in FDI
largely reflected relatively high economic growth and strong corporate
performance in many parts of the world. Reinvested earnings accounted for
about 30% of total FDI inflows as a result of increased profits of foreign affiliates,
notably in developing countries.
However, due to the financial and economic crisis, UNNTAD's report indicated
that global FDI inflows fell from a historic high of $1,979 billion in 2007 to $1,697
billion in 2008, a decline of 14%. In developed countries, where the financial
crisis originated, FDI inflows fell in 2008 by 29% mostly due to cross-border
M&A sales that fell by 39% in value after a five-year boom ended in 2007.
Whereas in developing countries and the transition economies FDI continued toView entire presentation