FG woos Austrian investors with 20% dollar returns

The Federal Government of Nigeria is actively seeking Austrian investors by highlighting the country's potential for lucrative returns. During the GPF Global Vienna Meeting in Vienna, Austria, the Minister of Budget and Economic Planning, Abubakar Bagudu, disclosed that businesses operating in Nigeria are yielding returns of over 20 percent in dollar terms.

The minister made the announcement while addressing the meeting virtually on the topic, "Financing Africa’s Future: The Vienna Stock Exchange as a Gateway to European Capital Markets for African Government Projects." Bagudu assured prospective investors that existing investors in Nigeria are already earning more than the desired 20 percent return on investment.

He highlighted Nigeria's large population of over 200 million people and growing demand for capital as attractive opportunities for Austrian companies, especially those with expertise in technology. Bagudu also praised the economic reforms implemented by the President Bola Tinubu administration, which have improved macroeconomic predictability and investor confidence.

These reforms aimed to stabilize the foreign exchange market, reduce distortions, and create a rules-based environment for private capital. The minister further expressed confidence in Nigeria's economic reforms, stating that the forex market has stabilized with free entry and exit, leading to a significant increase in foreign reserves to over $50 billion, providing over 11 months of import cover.

Bagudu also unveiled plans for the establishment of ESME Limited, a special purpose vehicle, to mobilize capital for investments in Nigeria through the Austrian capital market. The proposed financing targets various sectors, including green technology, waste-to-energy, textiles, pharmaceuticals, agriculture, and water projects. The Tinubu administration is optimistic about the progress made towards the proposed bond issuance and views the similarities between Nigeria and Austria as valuable opportunities for strengthening investment relations.