Nigeria remains an attractive investment destination in Africa despite its low ranking in the latest Africa investment index, by Quantum Global Research Lab.
Speaking to footprint2africa.com in Accra, Ghana after the launch of the index, Professor Mthuli Ncube, Head of Quantum Global Research Lab, said he expects Nigeria’s economy to start recovering from the fourth quarter of this year, adding that the medium to long-term prospects of Africa’s populous nation also remains ‘very Bright.’
“In the short term, there is definitely hope. We expect recovery in Nigeria in the fourth quarter of this year, because it is a large country with so many opportunities,” Prof. Ncube added.
The research firm ranked Nigeria as the 19th most attractive economy for investments flowing into the African continent, according its latest Africa Investment Index 2016.
“Despite the current economic challenges, we are quite confident on the medium to long term market prospects. Nigeria has earmarked a significant amount of capital to develop critical infrastructure in the country and there are various opportunities for public private collaboration providing investors’ return on their investments. We anticipate that investment in infrastructure will underpin the growth of the economy and meet the needs of a large Nigerian growth population,” he said.
Nigeria is the biggest economy in Africa with a GDP of US$ 415 billion that is projected to grow to about US$595 billion by 2020. This presents a big market for goods and services. In this sector, GDP per capita currently at 2,260 is projected to leap to US$2, 907 by 2020, which could boost consumption and domestic demand, it further noted.
The report uses data from macroeconomic and financial indicators and the World Bank Group’s Ease of Doing Business Indicators (DBI). The DBI ranks countries in terms of a regulatory environment conducive to business operation.